HM Revenue and Customs (HMRC) is facing significant criticism following reports of systemic misidentification errors affecting UK households, with some taxpayers facing monthly financial penalties of up to £450 due to administrative mistakes.
Taxpayer Ordeal Reveals Systemic Issues
One distressed taxpayer recently contacted the Guardian newspaper detailing their ongoing struggle with HMRC after the tax authority incorrectly associated another individual's employment with their national insurance number. The taxpayer explained that this error has resulted in HMRC taxing them as if they hold two simultaneous positions, effectively doubling their apparent income and triggering substantial additional tax and national insurance contributions.
The individual reported: "HMRC thinks I am someone else – and it's costing me £450 a month. In November, HM Revenue and Customs randomly associated someone else's job to my national insurance number. I can see where they work, when they started, their payroll number and how much they are earning."
Delayed Resolution and Compensation
Despite waiting 90 minutes to speak with an HMRC adviser, the taxpayer was informed that their case had not yet been addressed. Following intervention from the national newspaper this week, HMRC has now moved to separate the two affected individuals and has committed to providing £75 in compensation alongside a refund of any incorrectly charged tax on the next payslip.
Multiple Identification Problems Emerge
Further evidence of HMRC's identification challenges has surfaced on social media platforms, with a Personal Finance subreddit user describing how the tax authority managed to record their surname incorrectly. The individual explained that despite never having legally changed their name, HMRC has their last name listed as their mother's maiden name rather than their actual surname.
The user stated: "I've quite literally never had a different last name. Although my parents weren't married at the time, I've always had my dad's last name on every record. I've never had to go through the process of changing my last name on any legal document – until it came to my NI number."
Administrative Deadlock for Taxpayers
This incorrect recording has created a bureaucratic impasse, preventing the individual from accessing HMRC's digital services properly. They reported that while they can access the HMRC app using their mother's maiden name alongside their correct national insurance number, this discrepancy now requires them to provide evidence proving their identity – a challenging task when all their documentation bears a different surname.
The situation highlights broader concerns about HMRC's administrative processes and their impact on ordinary taxpayers facing financial uncertainty due to identification errors that can take months or even years to resolve completely.
