Taxing time over net bank blunder.(Features)

Byline: BY BOB HAYWOOD

TAXPAYERS in the Midlands are being baffled by a beat-the-deadline bank blunder.

Lloyds TSB - one of the High Street giants - still insists on calling HM Revenue & Customs the Inland Revenue.

This is despite the Government tax-collecting agency switching names nearly two years ago.

After being told by the Sunday Mercury of the confusion being caused to customers - and possible delays in paying the taxman - Lloyds TSB has now promised to act.

The oversight came to light after builder Danny Digby, of Wolverhampton, tried to pay his self-assessment bill for the tax year 2005-2006.

"I have been a Lloyds TSB customer for many years but only recently switched to internet banking," said Mr Digby, 45. "So it was the first time I had tried to pay my tax bill, which is due by January 31. When I was asked to input the name of the payee, I typed in 'HM Revenue & Customs' exactly as it appears on my statement of account. But I was told there was no record of any such agency.

"I tried all possible variations of the name but to no avail. Eventually, I rang the Lloyds TSB customer helpline and I was told to type in 'Inland Revenue' and that would be OK.

"I said it was no longer the agency's name but was given no explanation.

"I was trying to beat the January 31 deadline as advised by HM Revenue & Customs to avoid a pounds 100 fine, while a High Street bank has missed a name-change deadline by nearly two years."

The Inland Revenue changed its name to HM Revenue & Customs in April 2005.

An HM Revenue & Customs spokesman said: "This is the first we have heard about this situation. It is not of our making - it is a matter for Lloyds TSB, but we will be looking into it."

Last night, a Lloyds TSB spokesman said: "Until now, we have asked customers on our internet banking site to use the term 'Inland Revenue' when paying bills for HM Revenue & Customs.

"Although this is the name by which many customers know the organisation, we appreciate that some customers may use the formal name when making payments.

"We will therefore be adding this search term to our bill payments system."

bob_haywood@mrn.co.uk