MPs right to challenge HMRC over service levels

The report, HMRC performance in 2021–22,¹ published today (11 January), draws on evidence provided to it by CIOT² to conclude: “Taxpayers and their agents are still not receiving an acceptable level of customer service.” It asks HMRC to write to the Committee setting out its plan to improve customer service to adequate levels as quickly as possible, and within three months.

Susan Ball, President of the Chartered Institute of Taxation, commented:

“The Public Accounts Committee are right to be challenging HMRC on customer service levels. The delays that taxpayers and their advisers currently face are not acceptable.

“Our members tell us every day of the delays they face getting answers and action from HMRC – and the impact this is having on businesses and individuals.

“HMRC have 6,000 fewer customer service staff than five years ago.³ The Government appear to have cut staff numbers anticipating efficiencies and time savings from digitalisation that have not yet arrived.

“HMRC are also sending out fewer payslips and payment reminders than they used to, which could be leading to more attempts to contact HMRC to find out how much to pay and by when.

“It is crazy that people trying to get help from HMRC on paying the right amount of tax find it so difficult to get through, especially when an estimated £3 billion a year is lost to the Exchequer from non-deliberate taxpayer error.⁴

“The first principle of compliance surely has to be making it easy for willing taxpayers to comply with their obligations.”

^{1. The report can be read here.}

^{2. The report notes: “The Chartered Institute of Taxation submitted evidence to us that highlighted concerns about the difficulties both advisers and taxpayers face getting timely responses and action from HMRC.” (Para 15). CIOT evidence can be viewed in full here.}

^{3. “If you go back five years, I had 25,500 colleagues in customer services and I now have 19,500 colleagues in customer services” – Angela McDonald, HMRC Deputy Chief Executive, oral evidence to the PAC, Q114}

^{4. The latest Tax Gap report estimates tax lost due to taxpayer error at £3.0 billion (0.5%). It further puts loss due to taxpayers’ failure to take reasonable care in 2020-21 at £6.1 billion (1.0% of total theoretical liability).}