HMRC failed to help customer get his tax right

What happened

Mr T left the UK to live abroad permanently. He wrote to HMRC in September 2008 to ask what he needed to do to settle his UK tax affairs. Mr T had to write many letters to HMRC over a period of three years to sort out his tax affairs and for HMRC to repay the tax he had overpaid. Mr T complained to HMRC and it accepted there had been some mistakes and delays in response to Mr T's complaint. It paid him compensation of £75.

Mr T asked for a larger sum of compensation and also wanted HMRC to recompense him for 'lost' interest while he was waiting for the overpaid tax to be repaid. Mr T complained to the Adjudicator's Office (which looks at complaints about HMRC). The Adjudicator decided that there was no evidence that HMRC had received Mr T's first letter. It also decided that HMRC could not have sorted out Mr T's tax affairs any earlier. It also said that the amount of compensation HMRC had paid Mr T was sufficient, and HMRC should not recompense him for the 'lost' interest.

What we found

There was evidence that HMRC had received Mr T's first letter. Under HMRC's service charter to customers, it should have helped Mr T get his tax right by giving him the advice he asked for when he left the UK. If HMRC had done so, Mr T would have had the opportunity to settle his tax affairs earlier.

We agreed with the Adjudicator that HMRC was right not to compensate Mr T for the 'lost' interest because this was not an actual financial loss that could be calculated.

Putting it right

HMRC paid Mr T a further £100 for failing to give him advice when he asked for its help to get his tax right.