Treasury announces £51 million to bring HMRC phonelines back up to target

The UK’s Financial Secretary to the Treasury Nigel Huddleston announced £51 million in new funding so HMRC staff can answer more calls and help customers over the phone.

The decision to provide additional support for its phone service was made after HMRC halted plans to close its Self Assessment phonelines over the summer and offer a digital service only, following feedback from some of its most crucial stakeholders.

The additional funding will help HMRC to achieve the performance standards its customers expect.

The additional support for HMRC phonelines will also help the productivity of small businesses, as they will spend less time waiting on the phone managing their tax affairs and will have more time available to grow their business.

“People sometimes think that managing their tax is daunting – but it doesn’t have to be, which is why I’m fully committed to providing HMRC with the resources it needs to meet the needs of all its customers,” says Huddleston.

“Many tasks can quickly and easily be completed online or via the HMRC app, but today’s funding means that everyone can rest assured there will be someone at the end of the phone, ready to speak.”

Last year HMRC received over 3 million calls on just three things that can easily be done digitally: resetting an online password, getting a tax code, and getting a National Insurance number.

Shifting to online interactions is helping to reduce demand on phone lines and allows HMRC to prioritise calls for those who really need to speak to an adviser.

In support of this, the Chancellor invested over £136 million in the 2021 Spending Review to enable HMRC to enhance their digital services. HMRC received a £900 million cash increase over Parliament in this settlement, from £4.3 billion in 2019-20 to £5.2 billion in 2024-25.

“We remain committed to expanding our online services, and encouraging customers to go online where they can, as we strive to deliver good services as cost-effectively as possible. But we recognise this must happen at a pace the public is comfortable with,” says Jim Harra, HMRC’s Chief Executive and First Permanent Secretary.

“This additional funding will enable us to improve our helpline service for those who need to speak to us – including the vulnerable and digitally excluded – making sure they get the support they require.”

While many customers prefer speaking to someone over the phone, HMRC estimates that around two-thirds of all Self-Assessment calls can be dealt with online instead of over the phone and continues to pursue its efficiency-improving long-term strategy for customers to seek out its online resources.

Future building

HMRC’s strategy is to move customers to online services with the aim to making it easier for customers and for it to manage their tax affairs, enabling HMRC to focus its advisers on helping those customers who need to speak to someone and operating more cost-efficiently.

Many taxpayers, including small businesses, and benefit recipients do not need to contact HMRC. For those who do, HMRC’s long-standing strategy is to enable more of them to resolve their issues quickly and easily online, helping improve efficiency.

Customers’ use of HMRC’s online services has increased considerably, and in 2023-24 its online accounts and mobile app were accessed almost 250 million times.

Over 83% of customers responding to HMRC’s exit survey in the first months of 2023-24 reported they were satisfied or very satisfied after using an online service.