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Miscellaneous - Inland Revenue

Paramedics using marked vehicles to respond to 999 calls from home are facing tax bills for hundreds of pounds. The paramedics, who cover Norfolk and Suffolk, take their cars home after work so that they can be available to answer emergencies both en route, and at home. This "first community responder" scheme is designed to cut the time it takes to get a trained lifesaver to a patient in remote, rural areas. However, the Inland Revenue has ruled that use of the marked paramedic vehicles still constitutes a "taxable benefit" similar to a company pool car, and has landed some staff with bill running into hundreds of pounds for the privilege.

East Anglian Ambulance NHS Trust has paid these bills for the last couple of years - but says it cannot carry on doing it forever. It is currently negotiating with the taxman to try to waive the rules where there is a "clear social benefit" from the arrangement. However, the Association of Professional Ambulance Personnel is furious. General Secretary Mark Weatherhead said that staff felt "let down". He said, "East Anglian Ambulance Trust has abandoned its staff and left them to foot the bill, which is unacceptable."

He said that unless the situation improved, staff would simply leave the vehicles at work, and the "first responder" scheme would be hit. Anna Bennett, the finance director of the ambulance trust denied that it had let the paramedics down. She said she was hopeful that the new "Agenda for Change" pay deal coming into force would more than adequately compensate paramedics for their extra duties. She said that negotiations with the Inland Revenue were ongoing. "What we are looking for is for them to recognise the community benefit that this scheme offers."


A mum told how tax staff sent her a letter addressed to: "Mrs Michelle Deserves-Strangling". Michelle Stradling phoned an automated Inland Revenue line, leaving her name and address on the voice bank, to get a children's tax credit pack. Three days later, she was sent a letter with the insulting address. She said, "The more I think about it the more annoyed I become. If that letter had been sent to someone who had got out of a violent relationship this could have really set them back."

Michelle, of Yate, South Gloucestershire, added, "It's not nice to know you are giving personal information to someone who is so flippant about your affairs. When I spoke to the woman in the complaints department she didn't seem very optimistic they could find who sent out the letter. She asked me if the person I gave my details to had an accent - I had to explain it was an automated machine. They don't even know their own system."

Husband Graham was stunned when he saw the letter with the computer printed label. He said, "It's not what you expect from a Government department. It's been sent by somebody with a sad sense of humour." Inland Revenue spokesman Patrick O'Brien said, "This is completely unacceptable, the culprit will be subject to disciplinary proceedings. It's a very serious breach of staff behaviour. We are very, very sorry. The last thing we want to do is distress our customers."

Other insulting letters sent in recent months include one to pharmacist Pravin Patel, from Gloucester. He got a letter from reward points giant Nectar to: "Mr Pravin Fucking Paki". Welsh businessman Hefin Batty was sent a letter from a firm of solicitors in Kent, which began: "Dear Taffy Bastard". Val Billings, from Wolverhampton, got a letter from a bank to her late husband Mel, addressed to: "Mr Billings deceased". And a shop in Liverpool sent a bill to Elizabeth Murray, who had died of a heart attack, which began: "Dear Mrs Dead".


Almost a million taxpayer records were accidently deleted from Inland Revenue computer systems between 1997 and 2000 due to a software problem which went unnoticed for several years. The Department took three years to discover that software used to cleanse its database of old cases was also wiping live ones from its system. This resulted in some 364,000 people who cannot be identified being owed £82m, while another 22,000 did not pay tax due of around £6m. The Revenue admitted the problem in 2004. A routine housekeeping procedure on the PAYE database, which had been in place for at least 10 years, failed to distinguish between old and live cases.

The error was revealed when a new management information system was brought in to monitor the software. The Revenue has since introduced a backup system. The MPs used the incident to reinforce their concerns about the Department's ability to manage the IT underpinning the tax system. Their attention focused on the serious IT problems which contributed to the troubled launch of the tax credits scheme in 2003, described by Committee Chair Edward Leigh as a "nightmare", and left many vulnerable people in financial difficulty. Mr Leigh said, "There is a general lesson here: that an ambitious scheme might be fatally undermined by its intrinsic complexity."

During the course of the Committee's inquiry, the Department, now known as HM Revenue & Customs, it had learned the lessons from its previous IT problems. It is said to be in the midst of a dispute with EDS, the tax credit system IT provider, over compensation "for unsatisfactory system performance". The case has gone to independent arbitration but, EDS has not accepted the findings, leaving the Department to "consider its legal options". The contract with its new IT provider, Capgemini, has imposed a more severe penalty regime for underperformance. The PAC noted that "such clauses inevitability affected the 'price' of the contract."
The Register


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