Parliamentarians allege HMRC intentionally allows phone services to degrade, prompting taxpayers to transition to online platforms.
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HMRC Criticized for 'Dreadful' Customer Service
A new report by MPs has slammed HMRC for dismal customer service, claiming that the tax office has intentionally neglected its phone services in the hope that taxpayers will resort to online solutions. This report follows record-breaking waiting times at HMRC.
The tax authority strongly denies these accusations, but the Public Accounts Committee's publication today reveals that service levels continue to plummet. In the 2023/24 fiscal year, average call waiting times exceeded a staggering 23 minutes, marking an increase from 16 minutes and 24 seconds in the previous year.
Adding fuel to the fire, HMRC only managed to answer 66.3% of customer attempts to speak with an adviser, well short of its target 85%. The tax office last reached this annual target for phone services back in 2017/18.
The influx of new taxpayers due to fiscal drag has strained HMRC's resources, with the office claiming it hasn't been provided sufficient support to manage telephone demand. However, MPs allege that HMRC is intentionally letting its phone services fail.
Crippling Wait Times
Call wait times soar to over 23 minutes, despite promises of improvement.
The report highlights the damage done to public trust in the tax system, as HMRC dropped 44,000 calls from customers who had been on hold for 70 minutes without explanation. Not only that, but the tax office neglects to provide callback options or accurate call wait time estimates. It even planned to shut down helplines with as little as two days' notice, due to an expected public backlash.
HMRC's Digital Bet
HMRC pushes for a digital-first strategy as part of its Making Tax Digital scheme, arguing that 66% of the 37 million calls it received last year could've been handled online. MPs raise doubts about whether HMRC's digital services are as efficient as they claim, given the troubles faced by its phone services.
Before restricting access to its phone services, the tax office is slammed for moving too quickly and not ensuring digital alternatives were fully operational. HMRC defends itself, stating that resource constraints due to frozen thresholds pushing more taxpayers to pay have impeded its ability to meet demand.
Moving Forward With Recommendations
In response to the report, MPs call for HMRC to re-implement a call wait time target and instead offer customers accurate estimated waiting times.
HMRC officials argue that their customer service is far from "baseless" claims, citing improvements such as reduced call waiting times by 17 minutes since April 2022. 80% of customers reported being satisfied with HMRC's digital services, according to the office.
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"HMRC must improve its customer service," states Sir Geoffrey Clifton-Brown MP, chair of the Committee. "Given that citizens have no choice but to engage with HMRC, it holds the responsibility to strive for the best possible service. Unfortunately, what we have instead is a tax authority sinking to new lows in service levels every year – intentionally or not."
And while HMRC had secured additional funding and personnel, concerns arise about whether the tax office will manage increased demand in the long run.
- Politicians question the wisdom of HMRC's focus on digital services, as the average wait times for callbacks continue to deteriorate.
- In the business section, finance experts discuss the deteriorating customer service received from HMRC, suggesting it could have implications for taxpayer confidence and future investments.
- The general news covers MPs' calls for HMRC to set a new target for call waiting times and provide more accurate estimated wait times, in light of the current situation.
- The average UK citizen might find themselves frustrated by the lengthy wait times when dealing with HMRC, affecting various aspects of their business and personal finance.
- The issue of HMRC's customer service and its impact on politics, finance, and business is gaining attention, with increasing criticism voiced by MPs and the public alike.
