How to complain if the bill doesn't add up

If you are not happy with your tax bill, you can complain. Initial complaints should be sent to your local tax office, but can be referred to the Adjudicator's Office, headed by the former Director of Public Prosecutions Dame Barbara Mills, for final arbitration.

This year the Adjudicator investigated 487 complaints against the Revenue, resulting in the payment in compensation of £100,490. The largest single payout was £28,400.

Complaints have included demand letters being sent out incorrectly, self-assessment forms going to the wrong people, who were then fined for non-completion, and misleading advice leading to late payment of tax.

One elderly and infirm lady was told, after completing her return, that she owed £500 even though, due to rebates owed, the correct figure was just £10. The Revenue sent a letter threatening court action and implicitly threatening imprisonment if payment was not made.

She complained to her tax office, but they refused to compensate. Her regional tax office then offered her £250 in recognition of the stress caused, which she felt was inadequate and so brought her complaint to the Adjudicator, who concluded that the Revenue had made a "serious error which would have caused unwarranted stress and intrusion into the personal life of almost any individual receiving such a letter, let alone someone who was elderly and unwell". Compensation of £450 was ordered.

Although the Adjudicator, in its annual report out on Tuesday, says the percentage of complaints upheld has fallen from 40 to 30 over the year, it may see a rise next year: huge problems with Revenue software are now threatening to leave millions of people out of pocket.

New computer systems for processing self-assessment forms have been delayed and the Revenue admits there is a large backlog, causing delays in tax refunds of up to three months. Dame Barbara may have a busy year.

The Adjudicator's Office:
www.open.gov.uk/adjoff/
0207-930-2292