HMRC have confirmed that cuts to taxpayer helplines, that were to have been introduced on a permanent basis from 8 April 2024, have been put on hold.
The original announcement of proposed cuts had been made on Tuesday 19 March. On 20 March, in a very swift change of direction, HMRC said that it was ‘halting its plans in response to the feedback while it engages with its stakeholders about how to ensure all taxpayers’ needs – including small businesses – are met as HMRC shifts more people to online self-service in the longer term’.
The Tuesday announcement had included the following changes to HMRC’s helplines on a permanent basis with effect from 8 April 2024:
self-assessment helpline to close between April and September, and to deal only with ‘priority queries’ on reopening in October;
VAT helpline to open for five days every month ahead of the deadline for filing VAT returns, but otherwise to remain closed; and
PAYE helpline no longer to take calls relating to PAYE refunds.
The proposed changes were part of HMRC’s response to repeated criticism of its service levels (e.g. the February 2024 Public Accounts Committee report which found service levels had ‘reached an all-time low’). The idea behind the proposals was to focus existing resources in a more targeted way to ‘better react to peaks in demand’ and increase the use of ‘self-service’ online tools – to achieve better service without spending more money. The Agent Dedicated Services line was unaffected by the proposed changes.
The tax profession reacted immediately to the proposed helpline cuts, with the CIOT deeming the changes ‘misguided’, noting that HMRC had decided to proceed with the changes even though its own evaluation of a previous trial of helpline changes in December 2023/January 2024 had concluded that it was too early to assess whether there had been a long-term shift from phone contact to online self-service.
HMRC now say that the changes to the three helplines ‘will all be halted while HMRC engages with stakeholders. This means the phone lines will remain open between April and September.’
In a letter to the Treasury Committee on 20 March, Jim Harra, HMRC Chief Executive and Permanent Secretary, said that that engagement will look at ‘how to ensure all taxpayers’ needs are met as HMRC shifts more people to online self-service in the longer term’. Harra had only the day before written to the Committee confirming that the changes were to go ahead.
Responding to the u-turn, the Treasury Committee issued the following statement: ‘The Treasury Committee is extremely pleased to see that common sense has prevailed. We welcome the decision to reverse yesterday’s ill-advised announcement. While we do not oppose expansion of digital services for those who want to use them, we remain entirely unconvinced that HMRC is adequately prepared to impose such a significant change in how it serves taxpayers.
‘Planned changes to the operation of HMRC’s phonelines have been mismanaged from the beginning. Questions still remain over the extent to which the department are prioritising its own needs over those of law-abiding and vulnerable taxpayers. We will continue to engage with HMRC on this issue.’
Meanwhile, various media outlets were reporting that Chancellor Jeremy Hunt had ‘ordered HMRC’ to step back from the proposed phone line closures.
HMRC have confirmed that cuts to taxpayer helplines, that were to have been introduced on a permanent basis from 8 April 2024, have been put on hold.
The original announcement of proposed cuts had been made on Tuesday 19 March. On 20 March, in a very swift change of direction, HMRC said that it was ‘halting its plans in response to the feedback while it engages with its stakeholders about how to ensure all taxpayers’ needs – including small businesses – are met as HMRC shifts more people to online self-service in the longer term’.
The Tuesday announcement had included the following changes to HMRC’s helplines on a permanent basis with effect from 8 April 2024:
self-assessment helpline to close between April and September, and to deal only with ‘priority queries’ on reopening in October;
VAT helpline to open for five days every month ahead of the deadline for filing VAT returns, but otherwise to remain closed; and
PAYE helpline no longer to take calls relating to PAYE refunds.
The proposed changes were part of HMRC’s response to repeated criticism of its service levels (e.g. the February 2024 Public Accounts Committee report which found service levels had ‘reached an all-time low’). The idea behind the proposals was to focus existing resources in a more targeted way to ‘better react to peaks in demand’ and increase the use of ‘self-service’ online tools – to achieve better service without spending more money. The Agent Dedicated Services line was unaffected by the proposed changes.
The tax profession reacted immediately to the proposed helpline cuts, with the CIOT deeming the changes ‘misguided’, noting that HMRC had decided to proceed with the changes even though its own evaluation of a previous trial of helpline changes in December 2023/January 2024 had concluded that it was too early to assess whether there had been a long-term shift from phone contact to online self-service.
HMRC now say that the changes to the three helplines ‘will all be halted while HMRC engages with stakeholders. This means the phone lines will remain open between April and September.’
In a letter to the Treasury Committee on 20 March, Jim Harra, HMRC Chief Executive and Permanent Secretary, said that that engagement will look at ‘how to ensure all taxpayers’ needs are met as HMRC shifts more people to online self-service in the longer term’. Harra had only the day before written to the Committee confirming that the changes were to go ahead.
Responding to the u-turn, the Treasury Committee issued the following statement: ‘The Treasury Committee is extremely pleased to see that common sense has prevailed. We welcome the decision to reverse yesterday’s ill-advised announcement. While we do not oppose expansion of digital services for those who want to use them, we remain entirely unconvinced that HMRC is adequately prepared to impose such a significant change in how it serves taxpayers.
‘Planned changes to the operation of HMRC’s phonelines have been mismanaged from the beginning. Questions still remain over the extent to which the department are prioritising its own needs over those of law-abiding and vulnerable taxpayers. We will continue to engage with HMRC on this issue.’
Meanwhile, various media outlets were reporting that Chancellor Jeremy Hunt had ‘ordered HMRC’ to step back from the proposed phone line closures.
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