Jonathan Evans MP tackles treasury minister on income tax claw back

10/09/10

During a debate in the House of Commons on 8th September 2010 regarding the action HMRC is taking to rectify overpayments and underpayments in the PAYE system, Jonathan Evans challenged Treasury ministers on the fairness of clawing back billions from taxpayers.

The planned “claw back” comes after no reconciliation process was undertaken last year, so instead HMRC must now carry out a two year reconciliation process leading to large amounts to be repaid. The planned reconciliation is due to affect over 5 million people.

Jonathan compared the planned actions of HMRC to that of a financial service company, saying
“If the head of HMRC was instead the finance director of a financial services company that was seeking to claw back that sort of money from customers, he would be obliged to take himself off to Canary Wharf and satisfy the Financial Services Authority that he had complied with the requirements to treat customers fairly.”

“The treasury should be satisfied that the mechanisms that have been outlined, including the period for repayment and other things, would satisfy the same approach that the FSA would take in relation to a private company.”