HMRC has faced criticism for pursuing individuals for tax debts they never owed, while Labour MP Angela Rayner has been cleared of any wrongdoing. Gabrielle O’Donovan is among those affected, having been nearly bankrupted by the tax authority over a £132,000 VAT bill that was not hers.
Speaking to The Telegraph, Ms O’Donovan described how HMRC treated ordinary people as 'low-hanging fruit'. The prolonged dispute left her feeling 'totally disillusioned about the integrity of the state institution that is HMRC'. The ordeal began when she received a five-figure bill in the post, leading to years of stress and anxiety.
'I nearly had a nervous breakdown waiting for them to get back to me,' she said. 'I was so upset with the whole thing and the way that I was treated.' Eventually, HMRC apologized for issuing a bankruptcy notice and offered her £200 in compensation. However, Ms O’Donovan rejected the offer, calling it 'insulting' and demanding a full public apology.
In contrast, Ms Rayner announced on Thursday, May 14, that she had been cleared by HMRC. Speaking to The Guardian, she said voters had been left with the impression that she tried to avoid tax or was reckless, but now they can see it was a complex area of law. She welcomed the conclusion that there was no wrongdoing or carelessness.
An HMRC spokesman said: 'We’ve apologised to Ms O’Donovan for wrongly issuing her with a bankruptcy letter. This shouldn’t have happened. The assessment and penalty were cancelled after Ms O’Donovan explained that her address had been hijacked.'
