HMRC to curb bonuses after £13m payout

HM Revenue and Customs (HMRC) employees will share in a £13 million bonus payout for performance in 2010.

However, HMRC has said bonuses will be curbed this year in line with other public sector organisations.

HMRC spent almost £800,000 more on bonuses last year than in 2009, despite mistakes made that saw 1.4 million people receive new tax demands in the run up to Christmas.

A statement from HMRC said: “These bonuses were paid as part of contracts signed under the previous administration.

“We have said we will restrict performance-related payments from 2011-12 and are conducting a review into pay structures. A two-year public sector pay freeze starts in 2011.

“The number of senior civil servants who will receive a bonus will also be dramatically reduced in future in line with commitments made by the prime minister.”

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