
The taxman’s dodgy data
Ten years ago, HMRC unveiled what was billed as ‘the biggest change’ to the tax system since PAYE began in 1944. The taxman mandated employers to report their workers’ pay every time they ran payroll. Introduced to support Universal Credit by providing earnings data in close to real time, it has since been used to support a raft of other public policies too, including Covid furlough. But this change to PAYE Real Time Information (RTI), as HMRC calls it, has been a disaster for households on Universal Credit, taxpayers, public finances and confidence in HMRC and the senior civil service, as the quality of tax data has effectively collapsed. At
