HMRC’s interaction with tax agents and taxpayers has long been central to the smooth running of the UK tax system. That interaction can be robust, transparent, challenging and collaborative, as required. Most tax agents operate in an open and collaborative manner, rather than a combative one, in order to agree practical solutions for their clients. I know I have always valued and appreciated such collaborative input from HMRC staff to reach a resolution for clients, and there are some great initiatives in a number of HMRC teams which aim to maintain communication and service levels.
However, HMRC’s overall levels have been declining for some years. This has been well documented, including most recently by the National Audit Office which revealed that taxpayers cumulatively spent the equivalent of nearly 800 years (7m hours) waiting to speak to an adviser in 2022/23 – more than double the 3.2m hours spent waiting in 2019/20. Similarly long response times can often be expected when dealing with letters sent by post to HMRC.
HMRC is of course dealing with a number of challenges. These range from post-pandemic issues perhaps including decentralisation and hybrid working, the ongoing impact of inflation on government departments’ budgets, to the growth in the proportion of taxpayers with complex tax affairs, and how to identify the resources required to implement robust and secure technology solutions for the future.
Juggling such a mix of demands would be a challenge for any organisation. Equally, however, this state of affairs is not sustainable. HMRC’s move to make greater use of technology systems is welcome, but it is vital that these solutions are fully implemented, tried and tested, before more traditional means of communication are switched off.
The decision to close a number of its helplines for lengthy periods unsurprisingly was not received well, and ultimately resulted in a U-turn earlier in the year. In May, the then government announced additional funding of £51m to assist HMRC in bringing its phone line service levels up to the target level of 85% of calls being answered, and the new government has also committed to investing more heavily into the tax authority – but it remains to be seen what the details will be, and whether it will go far enough.
Delays in response lead to worry and frustration, and there is also a financial cost. Agents, for instance, are often unable to charge clients for long periods of waiting for a call to be answered only for it to be cut off. There are also occasions when the human touch is invaluable. Issues or misunderstandings can be dealt with in a quick phone call with a decision maker at HMRC. Where specific names, phone numbers or email addresses are not provided to the taxpayer or their agent, this can lead to protracted correspondence by post over many months, only to reach the same conclusion.
Some important tasks lie ahead for the new Labour government to address poor service levels, to ensure HMRC is best placed to operate a tax system fit for purpose, to collect all tax due efficiently, and to best utilise the talents and experience of HMRC staff.
These problems will not all be solved in a day, but a starting point for the government would be to:
ensure that HMRC has adequate funding and resource;
hold HMRC to account for poor service standards and missing targets;
publish an annual plan as to how HMRC will improve its customer service; and
provide a mechanism for taxpayers to claim appropriate redress if they suffer financial or other loss as a result of poor HMRC service standards.
Home >Articles > HMRC service standards: where next?
HMRC service standards: where next?
HMRC’s interaction with tax agents and taxpayers has long been central to the smooth running of the UK tax system. That interaction can be robust, transparent, challenging and collaborative, as required. Most tax agents operate in an open and collaborative manner, rather than a combative one, in order to agree practical solutions for their clients. I know I have always valued and appreciated such collaborative input from HMRC staff to reach a resolution for clients, and there are some great initiatives in a number of HMRC teams which aim to maintain communication and service levels.
However, HMRC’s overall levels have been declining for some years. This has been well documented, including most recently by the National Audit Office which revealed that taxpayers cumulatively spent the equivalent of nearly 800 years (7m hours) waiting to speak to an adviser in 2022/23 – more than double the 3.2m hours spent waiting in 2019/20. Similarly long response times can often be expected when dealing with letters sent by post to HMRC.
HMRC is of course dealing with a number of challenges. These range from post-pandemic issues perhaps including decentralisation and hybrid working, the ongoing impact of inflation on government departments’ budgets, to the growth in the proportion of taxpayers with complex tax affairs, and how to identify the resources required to implement robust and secure technology solutions for the future.
Juggling such a mix of demands would be a challenge for any organisation. Equally, however, this state of affairs is not sustainable. HMRC’s move to make greater use of technology systems is welcome, but it is vital that these solutions are fully implemented, tried and tested, before more traditional means of communication are switched off.
The decision to close a number of its helplines for lengthy periods unsurprisingly was not received well, and ultimately resulted in a U-turn earlier in the year. In May, the then government announced additional funding of £51m to assist HMRC in bringing its phone line service levels up to the target level of 85% of calls being answered, and the new government has also committed to investing more heavily into the tax authority – but it remains to be seen what the details will be, and whether it will go far enough.
Delays in response lead to worry and frustration, and there is also a financial cost. Agents, for instance, are often unable to charge clients for long periods of waiting for a call to be answered only for it to be cut off. There are also occasions when the human touch is invaluable. Issues or misunderstandings can be dealt with in a quick phone call with a decision maker at HMRC. Where specific names, phone numbers or email addresses are not provided to the taxpayer or their agent, this can lead to protracted correspondence by post over many months, only to reach the same conclusion.
Some important tasks lie ahead for the new Labour government to address poor service levels, to ensure HMRC is best placed to operate a tax system fit for purpose, to collect all tax due efficiently, and to best utilise the talents and experience of HMRC staff.
These problems will not all be solved in a day, but a starting point for the government would be to:
ensure that HMRC has adequate funding and resource;
hold HMRC to account for poor service standards and missing targets;
publish an annual plan as to how HMRC will improve its customer service; and
provide a mechanism for taxpayers to claim appropriate redress if they suffer financial or other loss as a result of poor HMRC service standards.
