Public Confidence Shaken As HMRC Faces Accusations Of Poor Service

In a scathing report released on January 22, 2025, the Public Accounts Committee (PAC) has accused HM Revenue and Customs (HMRC) of deliberately degrading its phone services, leading to a significant decline in public confidence in the tax system. The committee's findings highlight a troubling trend in HMRC's customer service, with long waiting times and a lack of support for taxpayers.

Key Takeaways

• HMRC's phone service has been accused of being deliberately poor to push users online.

• Over 43,000 calls were cut off after customers waited more than an hour.

• The average call waiting time has increased to over 23 minutes.

• The PAC calls for urgent improvements in HMRC's service standards.

Accusations Of Deliberate Degradation

The PAC's report suggests that HMRC has intentionally allowed its phone services to deteriorate, aiming to encourage taxpayers to use online services instead. This strategy has backfired, as many customers still require assistance via phone, especially those with complex queries or who are not digitally savvy.

Sir Geoffrey Clifton-Brown, chair of the PAC, stated, "Given that citizens have no choice but to engage with HMRC, it has a responsibility to aspire to the highest standards of service. Unfortunately, what we have instead is a tax authority excavating its way to new lows in service levels every year."

Alarming Statistics

The report presents alarming statistics regarding HMRC's customer service:

• 43,690 customers were cut off after waiting an average of 70 minutes to speak to an adviser in the first 11 months of the 2023-24 financial year.

• The average call waiting time has risen to 23 minutes, nearly double the figure from two years ago.

• Only 66.4% of customer calls were answered, falling short of the target of 85%.

HMRC's Response

In response to the accusations, HMRC chief executive Jim Harra dismissed the claims as "completely baseless". He argued that the department has made significant improvements, reducing average call wait times by 17 minutes since April 2024. Harra also noted that over 80% of customers are satisfied with HMRC's digital services, which are designed to streamline tax management.

The Impact On Public Trust

The PAC's report warns that the degradation of phone services has severely damaged public trust in the tax system. As taxpayers face increasing complexity in their financial affairs, the inability to access timely support has led to frustration and confusion. The committee emphasised that HMRC must take responsibility for its service failures and work towards rebuilding trust with the public.

Recommendations For Improvement

The PAC has made several recommendations to improve HMRC's customer service:

1. Reinstate Call Waiting Time Targets: Establish clear performance measures for call waiting times.

2. Provide Accurate Waiting Time Estimates: Ensure customers receive real-time updates on their expected wait times.

3. Address Uncollectable Debts: Develop a strategy to pursue older debts before they become uncollectable.

4. Enhance Digital Services: Improve the availability and reliability of online services to better serve all customers.

Conclusion

The PAC's report serves as a wake-up call for HMRC, highlighting the urgent need for reform in its customer service approach. As the tax authority continues to transition towards a digital-first model, it must ensure that all taxpayers can access the support they need, regardless of their preferred method of communication. Without significant improvements, public confidence in HMRC and the tax system as a whole may continue to erode.

Sources

• HMRC accused of running “deliberately poor” phone service, Fleet News.

• HMRC was willing to let telephone helplines ‘fail’, say MPs, Financial Times.

• Watchdog accuses HMRC of deliberately ‘degrading’ phone services | HMRC | The Guardian, The Guardian.

• HMRC denies 'deliberately poor' phone service for taxpayers, BBC.

• HMRC accused of deliberately poor service and damage to public confidence in tax system - Committees - UK Parliament, UK Parliament.