HMRC service levels slammed by professional bodies
The heads of ten leading UK professional bodies have signed an open letter urging the Chancellor of the Exchequer, Rt Hon Jeremy Hunt MP, to prioritise investment in HMRC’s service levels in his upcoming Budget statement on 15 March 2023.
The group of professional bodies represent hundreds of thousands of professional accountants and tax advisers working across the UK, from small and microbusinesses to multinational organisations.
The letter notes the Public Accounts Committee’s recent claims that £42 billion in taxes have not been collected at a time when HMRC customer service staff numbers have been cut by 24 per cent in the past five years. It also argues that the delays and business disruption faced by their members has become “a regular occurrence when dealing with HMRC” with some businesses waiting upwards of six months for repayment and relief claims.
The signatories of the letter commented: “Our members are increasingly facing severe delays, business disruption and frustration when dealing with HMRC which is having significant ramifications for taxpayers, business owners and their agents. If the government wants to meet its economic objectives and boost productivity, it must invest in improving customer service and effectiveness at HMRC. We urge the Chancellor to treat this as a top priority in his upcoming Budget.”
The full letter includes brutal criticism of service levels, including quoting instances recorded where HMRC have “simply closed its telephone line when it could not cope with demand”.
It says: “At a time of economic hardship, this not only affects the amount we can spend on public services, but it also severely restricts economic growth.”
The letter continues: “We increasingly hear from our members about the severe delays, business disruption and frustration that has become a regular occurrence when dealing with HMRC. Businesses claiming repayments and reliefs are frequently waiting upwards of six months, straining cashflow. Time spent waiting on phone lines and sending chasing letters creates additional compliance costs that our members typically bear rather than pass on to their frustrated clients, but it is also an added cost for HMRC and ultimately, taxpayers.”
An HMRC spokesperson said: “We are answering around 70,000 calls a day and customer satisfaction is consistently around 80 per cent. Three-quarters of submitted forms and claims are now processed within 15 working days compared with 45.5% a year ago.
“We encourage customers to use our improved digital services. A record 11.7 million people submitted their Self Assessment returns on time this year and the vast majority used our online services to do so.
“The government is providing almost £1bn in extra funding to HMRC so it can continue to support taxpayers, tackle tax avoidance and secure money to fund vital public services.”
The signatories to the letter are:
