HMRC has ‘damaged trust in the tax system,’ according to a report produced by Parliament’s Public Accounts Committee.
The committee said HMRC’s customer services have ‘deteriorated even further’ since it reported a year ago. Just 66.4% of customers’ attempts to speak to an adviser have been successful, against a target of 85%. Average call waiting times exceeded 23 minutes.
The report is not sympathetic to HMRC’s claim it has not been adequately resourced to meet telephone demand. It states the tax collector ‘must take responsibility for its own failings’. The committee added that it is concerned HMRC it has sought to degrade its telephone service in order to drive taxpayers to its website instead.
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The underperformance comes despite HMRC receiving £51m in additional funding to support its telephone service last summer.
“HMRC’s treatment of taxpayers has damaged trust in the tax system,” the committee said. “It cuts off calls after customers have been waiting 70 minutes, without any explanation. It does not provide a callback option. It cannot provide callers with accurate information on expected call waiting times.”
AJ Bell pensions and savings expert, Charlene Young, commented: “This morning’s damning report from the Public Accounts Committee highlights a litany of failings at the tax collector.”
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“Taxpayers will often face lengthy delays reaching HMRC in order to clarify details of the tax system and work out how much they need to pay.
“While HMRC counters that a lack of resourcing is hampering its efforts and says that improved online services means many queries can now be handled without the need to pick up the phone, those arguments won’t matter a jot to those grappling with the UK beast of a tax system, especially during this busy period of the year.
“That argument is even less likely to fly given it received £51m of support from ministers last summer in a bid to get back on track with call targets, and clearly there’s a lot of work still to do.
“Faced with a tax system so elaborate and convoluted, and a desperate struggle to reach anyone at the tax office able to help with queries, it is no surprise millions of taxpayers end up missing tax deadlines,” she continued.
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“Of course, with interest rates far higher than they were a few years ago, any late payment interest now accumulates far more rapidly than it has done in the past.
“The twin problems of a growing tax burden and a squeeze on HMRC’s resources mean the situation seems unlikely to change anytime soon.”
