In a stinging report on HMRC’s performance in 2022/23, the Public Accounts Committee (PAC) concludes that HMRC’s customer service levels have ‘reached an all-time low because of conscious choices made by HMRC and HM Treasury’.
Over 60% of callers to HMRC’s helplines waited more than 10 minutes to speak to an advisor, with demand increasing by more than 10% a year for some key services. Without the resources to meet such demand, HMRC has been directing callers to online guidance (as had been seen with the agent dedicated line, with HMRC abandoning its 10-minute call-answering target last October).
The report cites CIOT evidence that HMRC service levels are ‘the single greatest concern expressed by its members’, with detrimental effect on cashflow, the cost of doing business and ‘attitudes to tax compliance and trust in the tax system’.
Dame Meg Hillier MP, Chair of the Committee, said: ‘Almost eight years have passed since our Committee challenged HMRC over its telephone lines’ holding message being one of the most streamed pieces of music in the country. Our latest report into its performance sadly illustrates a continued tale of decline in its services.
‘Our report also poses serious questions as to whether HMRC is getting the balance right between its civil and criminal prosecutions. Our findings show a steep drop in the latter at the same time as we see HMRC going to great lengths to challenge people in court over their employment status. Our Committee has heard the frustration felt by the many taxpayers and organisations who provided evidence to our inquiry loud and clear. HMRC would be well-advised to do the same.’
PAC recommendations include:
ensuring HMRC’s customer services are sufficiently resourced in the short and longer terms, so it can meet its service standards up until digital services ‘adequately address the needs of taxpayers and their agents’;
at the same time as acknowledging HMRC’s successes in collecting tax debt, putting measures in place to make sure taxpayers can easily report problems when dealing with HMRC’s debt collection agencies, avoiding disproportionate enforcement action;
assessing the impact of the IR35 reforms on the use of contractors in different sectors, and looking further into HMRC’s strategy around use of its criminal powers (with the number of criminal prosecutions having fallen in recent years); and
reviewing error and fraud in R&D claims ‘going back sufficiently far to tackle egregious fraud’.
In a stinging report on HMRC’s performance in 2022/23, the Public Accounts Committee (PAC) concludes that HMRC’s customer service levels have ‘reached an all-time low because of conscious choices made by HMRC and HM Treasury’.
Over 60% of callers to HMRC’s helplines waited more than 10 minutes to speak to an advisor, with demand increasing by more than 10% a year for some key services. Without the resources to meet such demand, HMRC has been directing callers to online guidance (as had been seen with the agent dedicated line, with HMRC abandoning its 10-minute call-answering target last October).
The report cites CIOT evidence that HMRC service levels are ‘the single greatest concern expressed by its members’, with detrimental effect on cashflow, the cost of doing business and ‘attitudes to tax compliance and trust in the tax system’.
Dame Meg Hillier MP, Chair of the Committee, said: ‘Almost eight years have passed since our Committee challenged HMRC over its telephone lines’ holding message being one of the most streamed pieces of music in the country. Our latest report into its performance sadly illustrates a continued tale of decline in its services.
‘Our report also poses serious questions as to whether HMRC is getting the balance right between its civil and criminal prosecutions. Our findings show a steep drop in the latter at the same time as we see HMRC going to great lengths to challenge people in court over their employment status. Our Committee has heard the frustration felt by the many taxpayers and organisations who provided evidence to our inquiry loud and clear. HMRC would be well-advised to do the same.’
PAC recommendations include:
ensuring HMRC’s customer services are sufficiently resourced in the short and longer terms, so it can meet its service standards up until digital services ‘adequately address the needs of taxpayers and their agents’;
at the same time as acknowledging HMRC’s successes in collecting tax debt, putting measures in place to make sure taxpayers can easily report problems when dealing with HMRC’s debt collection agencies, avoiding disproportionate enforcement action;
assessing the impact of the IR35 reforms on the use of contractors in different sectors, and looking further into HMRC’s strategy around use of its criminal powers (with the number of criminal prosecutions having fallen in recent years); and
reviewing error and fraud in R&D claims ‘going back sufficiently far to tackle egregious fraud’.
