Prudential has provided the HM Revenue and Customs with incorrect tax codes, for the tax year 2006 – 2007, for over 5,000 of its male pensioners. Prudential have admitted the error was made by an employee when compiling the information to send to the HM Revenue and Customs, however they have refused to pay compensation.
Prudential has written to the people concerned, advising them of the problem and that they will be required to pay an average of £33.00 per month extra to make up for the shortfall. Prudential have apologised for the stress and inconvenience this has caused. However, other people in the industry feel that this action is disgraceful and that Prudential should settle the difference.
Our view
Prudential have made a mistake and whilst we do not believe they should settle tax bills that are those of the individual distress and inconvenience has been caused and they should make an ex-gratia payment of some sort. They have put some people in financial difficulty for the coming year and it is a reasonable expectation to say sorry properly. Even £100 per pensioner would make no dent in the Chief Executive’s salary package.