Don't be a dummy when it comes to tax returns, HMRC says

15/February/2012

The taxman is urging employers to double-check the employee data submitted on tax returns after research found many are riddled with dummy, incomplete and inaccurate information.

Employer returns contain personal details like the names, birth dates, national insurance numbers and addresses of millions of payroll employees.

While many are submitted accurately, thousands are being filed with mistakes, HM Revenue & Customs (HMRC) said.

Research into employer returns by the tax authority found 128 staff were entered as Mr, Ms or Mrs Dummy, while 824 employees had the surname 'Unknown'.

In another instance, 40 employees were more than 200 years old, according to their dates of birth.

Another common mistake is for employees' forenames and surnames to be swapped around or for their first names to be replaced by initials.

The mistakes make it difficult for HMRC to identify individuals and work out the correct tax.

"It's really important that employers get their employees' information right, so that HMRC can match it to the right tax records," said Jim Harra, HMRC's director of customer operations.

"Otherwise, it can lead to more contact from staff, trying to sort out their tax, and from HMRC, trying to sort out the data issues."

See how our UK tax department can help you keep on top of employee returns.