Barclays is launching an investigation after a whistleblower warned of serious errors in the way taxation of interest paid on PPI compensation is calculated.
Charlie Boyle, a former contractor for the bank, alerted the Financial Conduct Authority (FCA) to his concerns via the whistleblowing hotline.
Go deeper with GlobalData
Boyle, who headed a team handling financial reconciliation, said his department was driven by a "political and target-obsessed approach", which could have resulted in incorrect figures being reported to the Barclays’ board, including CEO Antony Jenkins.
In emails sent to senior figures at the bank, he alleged that there was a "haemorrhaging of exceptions" over the taxation of interest payments.
He said the team responsible for taxation was not even taken on until late February, while HM Revenue and Customs changed the way the tax on PPI compensation interest was handled back in October 2013.
Boyle also alleged that the bank was pervaded by a poisonous culture of office politics, in which bullying was commonplace.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData"I spent hours doing completely useless online courses about how ethical the bank now is. It says it all that having just completed those courses I was handed a 30% pay cut.
"But the real problem is that on the ground, the place is still suffused with politics, back-biting and HR bullying.
"Like it or lump it was an expression that stood out in my mind. They simply don’t seem to value their employees."
A spokesperson for Barclays said: "Barclays takes any claims of bullying or malpractice seriously, and as a matter of course investigates fully, as we have done in this case.
"Mr Boyle was a contractor who decided to leave Barclays following discussions regarding a company-wide reduction in contractor rates.
"He made no allegations of bullying prior to his decision to leave, and a full investigation by a senior independent official has found no evidence to support these claims."
The spokesperson went on to explain that Barclays had made provisions for the new HMRC rules and that Boyle may not have been aware of this.
"In October 2013, HMRC introduced a requirement for banks to deduct tax on interest on PPI payments to customers.
"Barclays put systems in place to meet this requirement. In addition, Barclays carried out reconciliations to check the right amount of tax was paid.
"However, in some cases the proper reconciliation did not occur for a short period. In these cases Barclays took a prudent view to make payment of any unreconciled amounts to HMRC to ensure there was no underpayment of tax."
Related articles:
Lloyds Bank accused of exploiting loophole to short-change PPI claimants
Lloyds PPI compensation bill to touch £10bn
Barclays to cut 244 jobs with closure of PPI claim centre
