HMRC denies ‘deliberately poor’ phone service

HMRC has denied accusations of intentionally providing subpar phone services to encourage taxpayers to use online resources instead.

A report by the Public Accounts Committee (PAC) revealed that nearly 44,000 callers were abruptly disconnected after waiting over an hour on hold in the first 11 months of the 2023–24 financial year. This figure marks a sharp increase from 6,875 disconnections during the entire 2022–23 financial year. The committee criticized HMRC for its poor service, claiming it has “damaged trust in the tax system.”

Jim Harra, HMRC’s chief executive, rejected the claims, describing them as “completely baseless.” He noted improvements, stating that average call wait times had decreased by 17 minutes since April 2023.

The timing of the report, just before the 31 January self-assessment tax return deadline, raises concerns about further strain on HMRC’s services. The PAC report attributed the disconnections to HMRC’s systems being unable to handle high call volumes, with no warnings or callbacks provided to affected customers.

PAC Chair Sir Geoffrey Clifton-Brown criticized HMRC’s approach, stating the authority seemed to be “degrading its own services as a matter of policy.” He also noted HMRC’s slow progress in adopting online communication compared to other government agencies.

The committee has called for significant improvements in customer service, a better strategy for addressing unpaid debts, and stronger efforts to combat tax system abuse. In 2023–24, HMRC wrote off £5 billion in uncollectable debts, up from £3.2 billion the previous year.

The report also raised concerns about HMRC’s reduced rate of criminal investigations and prosecutions for tax-related offenses. It urged the department to better understand and address the offshore tax gap.

HMRC’s journey toward becoming a “digital-first” organization, which began in 2010, has faced criticism. In March 2023, it attempted to close its phone lines for six months but reversed the decision within 24 hours following backlash.

Despite the criticism, Harra emphasized HMRC’s commitment to providing phone support for those needing extra help. He also highlighted that over 80% of customers are satisfied with HMRC’s digital services, with increasing numbers managing their tax affairs online.