Hundreds on maintain to HMRC minimize off after 70 minutes, report finds

HMRC has denied operating a “intentionally poor” cellphone service in an try and push taxpayers to hunt assist on-line as a substitute.

Almost 44,000 clients have been minimize off with out warning after being on maintain for greater than an hour final yr, a report by a committee of MPs discovered.

It warned HMRC’s service had received even worse since then and urged the tax authority to take duty for failing its clients.

HMRC chief govt Jim Harra mentioned the committee’s claims on its customer support have been “utterly baseless” and added “we have made large enhancements to our service requirements, with name wait instances down by 17 minutes since April final yr”.

The report comes forward of the deadline for self-assessment tax returns on 31 January, which may result in elevated demand for assist.

HMRC’s cellphone line went lifeless on 43,690 clients who had been ready 70 minutes to succeed in an adviser within the first 11 months of 2023-24, the Public Accounts Committee (PAC) report mentioned.

This was as a result of HMRC’s system couldn’t address the amount of calls however clients weren’t warned they have been about to be minimize off, nor have been they known as again, the report added.

The determine for the variety of callers minimize off was revealed by the Nationwide Audit Workplace (NAO) in Might final yr however MPs have highlighted it amongst fears HMRC was operating down its personal helpline.

Sir Geoffrey Clifton-Brown MP, chair of the PAC, mentioned HMRC was “excavating its technique to new lows” in its customer support yearly.

He added: “Worse, it appears to be degrading its personal providers as a matter of coverage.”

The committee has known as for “daring and impressive management” to enhance its buyer providers, and higher deal with tax system abuse and unpaid money owed.

In 2023-24, HMRC wrote off £5bn in money owed as uncollectable, up from £3.2bn in 2022-23.

The report known as for the authority to get a greater understanding of the offshore tax hole – the distinction how a lot tax ought to be paid, and what was really paid.

It additionally raised issues over lowering charges of legal investigation and prosecution for tax-related offences.

The suggestions come after a sequence of criticisms levelled at HMRC.

In March final yr, it introduced its cellphone line can be closed between April and September, however was pressured to reverse its determination inside 24 hours.

And in Might a report discovered that clients have been ready a median of practically 23 minutes to get by way of to an adviser.

Mr Harra, first everlasting secretary and chief govt at HMRC, mentioned: “We are going to all the time be there to reply the cellphone for many who want additional assist. On the similar time, greater than 80 per cent of shoppers are happy with our digital providers, with increasingly folks utilizing them to rapidly and simply handle their tax affairs.”