TAX chiefs have come under fire for sending a former York resident now living in France a tax bill - for a mere 1p.

The Inland Revenue sent retired NHS scientist George Longster the tax demand, with a post-paid reply envelope, to his home in Lanvallay, Brittany.

Mr Longster, aged 62, who used to live in Acomb, said: "All they were asking for was 1p. There was a Giro Bank pay slip which said amount payable - 1p. Trying to collect a debt of 1p is not being efficient. It is ridiculous."

Mr Longster, who used to work for the Blood Transfusion Service, highlighted the adminstrative work, including cashing a cheque, which would be needed. He received the demand for £1.70 in March for tax on a bank account's interest. The statement was issued 13 days after the amount was due.

Mr Longster, who is self-assessed for tax, says he paid the money promptly but last month received the 1p demand for interest between 26 February and the end of March. He was so astonished by the bill he contacted York Labour MP Hugh Bayley.

Mr Bayley said: "This is bureaucracy gone mad. It is not only grossly wasteful of public money but makes the Inland Revenue appear ridiculous."

"The cost of the post alone for two letters to France and the post-paid reply envelopes amounts to 70 per cent of the whole amount recovered. The processing and administrative costs must amount to ten times what was paid by Mr Longster."

"It would have saved the Treasury money not to collect this tiny amount. I've written to the Treasury to ask them to stop this silly and wasteful behaviour."

Mr Bayley has contacted Financial Secretary Dawn Primarolo, stressing that Mr Longster was asked to pay interest on a sum for 13 days before the bill was issued.

He accepted the 1p bill may have been caused by a computer fault but said this needed rectifying.

The Inland Revenue denied the tax demand was a bill, saying it was just a statement.

"Part of the self-assessment system is our responsibility to the tax payer to keep them informed of their tax liabilities," said an Inland Revenue spokeswoman.

"It is not a bill, it is purely a statement."

But she accepted if the demand was not paid it would be carried forward on to the next statement and interest would be charged.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.