HMRC ‘flying blind’ on over 1.2m tax demands after failing to track error rates 

HMRC has been accused of “flying blind” on over 1.2m tax demands after admitting it does not track how many are challenged or cancelled due to errors. The tax authority issued 1,254,201 individual PA302 simple assessment tax calculations in the 2024/25 tax year, according to figures obtained by City AM via a Freedom of Information request. PA302 forms are sent to taxpayers instead of having them fill out self-assessment tax returns. HMRC uses data it holds from employers, pension providers, banks and government departments to determine how much tax is owed automatically. Common triggers for a PA302 include a person owing income tax that cannot be automatically collected through the PAYE system, owing HMRC £3,000 or more and having untaxed income, such as high savings interest, which does not require a full self assessment return. But in response to the FOI, HMRC refused to disclose how many calculations were reduced, cancelled or withdrawn, stating that retrieving the data