HMRC has been facing increasing criticism that appears to be leading to a decline in its reputation. One of the key contributing factors for this, is the decline in customer service standards.
The most recent Public Accounts Committee report on HMRC highlights that the tax body simply is not operating effectively.
The committee's summary is pretty condemning: "HMRC's customer services have deteriorated even further since this committee last reported a year ago. In 2023/24, HMRC answered just 66.4% of customers' attempts to speak to an adviser, against a target of 85%. Average call waiting times exceeded 23 minutes. HMRC says it has not been adequately resourced to meet telephone demand from customers, but it must take responsibility for its own failings to offer sufficiently effective digital services to customers. We are concerned that it has sought to degrade its telephone service to drive taxpayers to digital channels."
The message becomes even more disparaging further on: "HMRC's treatment of taxpayers has damaged trust in the tax system. It cuts off calls after customers have been waiting 70 minutes, without any explanation. It does not provide a callback option. It cannot provide callers with accurate information on expected call waiting times."
The main problems appear to be:
- Excessive call waiting times
- Closure of helplines and a reduction in support
- Delays in processing tax returns and refunds
- Inaccurate or unhelpful responses
- Aggressive debt collection versus slow service
HMRC's customer service problems create stress for taxpayers, damage trust in the system, and make compliance harder. The push towards digital self-service, without adequate alternatives, has only worsened the situation.
So what's the solution? HMRC needs to start to rebuild public trust. This means addressing the customer service issues by, in the first instance; creating clearer and better communication both written and verbal, gathering feedback from the public into what they need from the service, and creating smarter digital services without replacing human interaction. HMRC's reputation is likely fixable, but it requires real investment in service, fairness, and transparency.
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