Accountancy firms face increased workloads as HMRC customer service delays persist

HMRC has recently faced backlash over its failing customer service and individuals looking to complete their self-assessment tax return have also reported lengthy delays.

The Public Accounts Committee (PAC) published a report, revealing taxpayers and their agents are still not receiving an acceptable level of customer service from HMRC. The PAC criticised HMRC for not deploying the resources required to maximise the tax revenues it collects.

The PAC also highlighted its scepticism of HMRC’s plans to improve its communication service through digitisation.

Self-assessment taxpayers will be aware of their impending tax return deadline of January 31. As this deadline approaches, the volume of assistance required should increase with individual queries from various taxpayers across the country.

A London worker told Accountancy Age he had a “shocking” experience receiving emails from HMRC telling him to pay his tax by the end of the month, but he was unaware of how much he had to pay. This led him to having to sort the issue through the customer service line.

He said: “It takes 45 minutes to get through and then the agent does their best to forward you somewhere else instead of taking time to understand your issue.”

Speaking to AA, a sole trader based in West Yorkshire, said he has had issues with HMRC for a few years, saying: “I’ve actually gone back to work because it’s not worth the stress of being self-employed, everyone I speak to are robots and they don’t seem to have a clue – they will just put the phone down on you.”

However, not all experiences have been negative – a sole trader from Carlisle told AA it only took ten minutes to reach someone on the phone.

“I reached HMRC very quickly and they were extremely knowledgeable and helpful to me” she adds.

While HMRC believe the pandemic is a big factor as to why customer service levels are falling, the PAC member, Peter Grant believed this not to be the case

Mike Hodges, tax partner in the private wealth team at Saffery Champness, understands the recent criticism.

“This has culminated in HMRC’s recent announcement that in January it would only deal with ‘complex enquiries’ on the agent-dedicated line for self-assessment,” he says.

“If HMRC is serious in helping its ‘customers’ navigate the complexities of the tax system and pay the right amount of tax, then it remains the case that significant improvement is needed.”

Customers losing trust in the system and benefits no one, including accountants

Individuals may look to their accountants if they are unable to obtain the help of HMRC, resulting in an increased workload for accountancy firms. However, Hodges believes the tax system is at its best when tax practitioners and HMRC are able to “work together to ensure that each plays their part.”

If HMRC fail to play its part, it could lead to the public losing “respect and confidence” in the tax system, aggravating an already challenging relationship with the public.

HMRC given three months to improve

The PAC, which currently is composed of 15 MPs, has given HMRC three months to improve its “unacceptable” levels of customer service.

HMRC has looked to digitisation to improve its current customer service, but the PAC is “concerned” by this notion as some customers will always need the option to speak to someone directly.

The committee members have asked HMRC to write to them, outlining a plan to improve customer service to “adequate” levels as quickly as possible.

Hodges acknowledges that improvements are needed by HMRC but says the three-month timeline is not enough to “deliver anything more than a sticking plaster to apply to the current problems.”

Hodges believes HMRC possess some very “dedicated and capable individuals”, but they must recruit more to enhance their overall service. HMRC is planning to hire 2500 more staff nevertheless the time it takes to recruit and train up these new individuals means it cannot be an “immediate fix” he adds.

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