The all-party Parliamentary group on taxation chair Ian Liddell-Granger wants the Government to appoint a minister to overhaul HM Revenue & Customs after a series of blunders.
Last week, HMRC admitted that 146,000 pensioners will have to pay an average of £800 in uncollected tax after their state pension payments were not taken into account when calculating income tax for the third year running.
The blunder affects pensioners that get both a private pension and a state pension and earn above the personal allow-ance of £6,475.
HMRC made the same mistake in 2008/09 and 2009/10 but wrote off the tax because the fault was discovered after the end of the tax years.
Those facing payments for 2010/11 will be able to spread them over three years, starting in 2012/13.
Conservative MP for Bridgewater Liddell-Granger says a minister must be appointed temporarily to deal with HMRC’s “embarrassing” errors.
He says: “We must have a minister responsible directly and solely for HMRC at the moment because the problems there need to be taken more seriously. It is embarrassing.”
An HMRC spokesman says: “We are very sorry that some pensioners will receive an unexpected tax bill for 2010/11.”