Revenue boss backtracks over tax blunder

The country's top tax official today apologised to 1.4 million people facing surprise bills amid claims he was "out of touch with reality". Dave Hartnett, permanent secretary at HM Revenue & Customs, said he was "deeply sorry" that taxpayers were being asked to pay back about £2bn collectively, or an average of £1,428 each. His statement was issued after he caused fury by insisting the authorities were not to blame and declaring: "I'm not sure I see a need to apologise." One Tory MP accused him of "arrogance", and said HMRC had been warned for years that outdated systems meant such a situation was inevitable. As the furore over his comments increased, HMRC rushed out a contrite statement from the senior civil servant. "I am deeply sorry that people are facing an unexpected tax bill," Hartnett said. "Everyone in HMRC is working hard to make this as painless as possible. I apologise if my remarks came across as insensitive. I am working flat out with my colleagues to ensure everyone's tax is correct and the new computer system will help us do this. "It was this new system that revealed the extent and size of reconciliations required and will help us be more accurate in future but we do not underestimate the distress caused to taxpayers and once again I apologise."