HMRC has announced permanent cuts to its helpline services. While the department claims these changes are part of modernisation efforts, they raise significant concerns for taxpayers and professionals alike.
1. Self Assessment Phoneline Closure
The decision to permanently close the self assessment phoneline between April and September is a perplexing one. During these crucial months, taxpayers often seek assistance with complex queries related to their self assessment. By directing them solely to online services, HMRC risks leaving many in the lurch. Not everyone is comfortable navigating digital platforms, and the closure of the phoneline may exacerbate confusion and frustration.
2. VAT and PAYE Helpline Cuts
The permanent closure of the VAT helpline is particularly troubling. Businesses rely on this service for timely advice on VAT registration, compliance, and other critical matters. The abruptness of the closure—only five days' notice—shows a lack of consideration for taxpayers and agents. Furthermore, limiting the helpline to just five days a month adds unnecessary pressure during peak filing periods.
Similarly, the PAYE helpline's refusal to handle refund-related calls is baffling. Refunds are a fundamental aspect of tax administration, and taxpayers should be able to seek clarification without hurdles. Redirecting them to online resources may not always suffice, especially when specific scenarios require personalized assistance.
3. Lack of Transparency
HMRC's decision-making process lacks transparency. The inconclusive evaluation of the trial closure of the self assessment helpline during the summer months raises questions. Why make permanent changes without a thorough assessment of their impact?
Taxpayers deserve clarity on how these decisions were reached and what evidence supports them.
4. Impact on Accessibility
While HMRC emphasises self-service through online channels, it must recognise that not everyone has equal access. Some taxpayers lack reliable internet connectivity or struggle with digital literacy. The closure of helplines disproportionately affects vulnerable groups, including the elderly and those with limited technological resources.
5. Professional Concerns
Tax professionals, including the ICAEW Senior Technical Manager Caroline Miskin and CIOT President Gary Ashford, have expressed reservations. The VAT helpline closure may lead to high demand, long waiting times, and potential errors. HMRC's ability to provide adequate support is now in question.
Caroline Miskin:
“While HMRC has evaluated the trial to close the self assessment
helpline during the summer months, it doesn’t plan to formally review it
any further, even though the impact of this move on the accuracy of
returns won’t be clear for some time.
Since restricting the self assessment helpline, HMRC has been quick
to promote the fact that a record number of taxpayers met the self
assessment deadline. However, more people also missed the deadline and
some online services require significant improvement.”
CIOT president Gary Ashford:
“We are deeply dismayed that, so soon after the criticisms levelled
at them by the Public Accounts Committee, and in the light of an
inconclusive evaluation, HMRC have decided to make these big, permanent
cuts to the help they provide to taxpayers. If last year’s announcement
of the summer closure of the Self-Assessment helpline was a ‘flashing
indicator’ that HMRC can’t cope, today’s announcements are a blinding
light.
HMRC’s own evaluation of both the closure of the helpline in summer
2023, and the helpline restrictions during the 2024 self-assessment
peak, concluded that it is too early to say if there has been a
long-term shift from phone contact to online self-service. Yet HMRC have
decided to go ahead anyway."
Conclusion
HMRC's helpline cuts risk alienating taxpayers and undermining the department's core mission—to serve the public effectively. While modernisation is essential, it should not come at the expense of accessibility and quality service. Taxpayers deserve better, and HMRC must reevaluate its approach to helpline services.
Tax does have to be taxing.
Tax Investigation Insurance
Market leading tax fee protection insurance for businesses, sole traders and individuals. Protect yourself from accountancy fees in the event of an HMRC enquiry.
Having a Solar Protect Tax Investigation Insurance policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (your tax return agent) can get on and defend you robustly.
You have the peace of mind knowing that your accountant's (your tax return agent) fees will be paid by the insurance without any Excess for you to find.
Tax Investigation Insurance is an insurance policy that will fully
reimburse your accountant's (your tax return agent) fees up to £100,000
if you are subject to enquiry by or dispute with HMRC.
A Solar Protect policy will enable your accountant (your tax return agent) to:
-
Deal with any correspondence from HMRC
-
Attend any meeting with HMRC
-
Appeal to the First-tier Tribunal or Upper Tribunal
-
Having the security of knowing that fees will be met in full will
enable your Accountant (your tax return agent) to defend your position
robustly
Please click here for details.
HMRC Is Shite (
www.hmrcisshite.com), also available via the domain
www.hmrconline.com, is brought to you by
www.kenfrost.com "
The Living Brand"
