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Issue of the day

HMRC bonuses

Friday, 07 Mar 2008 09:13

HMRC bonuses

Friday, 07 Mar 2008 09:13
HMRC staff see bonuses rise 60 per cent
HM Revenue and Customers (HMRC) has been criticised for paying its senior staff £23 million in bonuses despite continued department failings.

The Treasury select committee said the payments were "completely unjustified" in light of continued problems in the department, including rising complaints about tax credits and missed VAT processing targets.

HMRC has defended the payments, arguing they help to motivate staff to improve the department's performance.

But MPs on the committee said the department "appeared to be rewarding failure".

Senior staff bonuses rose 60 per cent in the 2006/07 tax year, averaging £7,727 each.

politics.co.uk brings you the key quotes and reactions throughout the day.

Responses 

  • Fallon: HMRC rewarding failure

    The Treasury is failing to lead by example over delivering value for money after HM Revenue & Custom bosses were paid £23 million in bonuses despite department failings, claims Michael Fallon of the Treasury committee.More...

  • Lib Dems: Performance 'undermined' by bonuses

    The Liberal Democrat party has joined a chorus of criticism following confirmation from the Treasury of large pay increases and bonuses for senior staff at HM Revenue and Customs (HMRC).More...