HMRC's Army of Home Inspectors

 

HMRC has hired an army of almost 500 new valuation agents to snoop on homes.

The Valuation Office Agency’s annual report up to the end of March showed that staff costs had risen by £31.5 million and the total Full Time Equivalent staff number has risen by 493, a ten-times increase in the hiring rate on the year before. The agency is being merged with HMRC. It said:

“The rise in staff costs is primarily due to our pay award, and an increase in agency staff costs of approximately £12 million to support performance recovery and data enhancement work to improve our Council Tax data quality.”

The agents will be able to demand entry to homes for “internal inspections” to determine whether they are worth over £2 million and will therefore have to pay Reeves’ so-called Mansion Tax. If you don’t let them in you will get a £200 fine or worse.

However, it is not as simple as that (irrespective of the fine) the current law does not give HMRC the right to enter your property to poke around in order to try and find evidence to hike the valuation for your Labour's new so-called 'High Value Council Tax Surcharge.' 

Currently HMRC can ask the occupier to agree a time for an inspection but if the occupier refuses to agree, HMRC has to apply to the First-tier Tribunal for approval. 

The occupier can object to the inspection on reasonable grounds for example that the inspection is not reasonably necessary; the proposed intrusion is disproportionate to the tax issue at stake; HMRC has not identified what an internal inspection would actually establish; adequate substitute evidence has been offered, or HMRC's proposed inspection is speculative or a fishing exercise. 

These legal rights are a significant practical obstacle to Labour's 'mansion tax.' A system involving hundreds of thousands of valuations could scarcely make an individual First-tier Tribunal application every time an owner refused access without creating a substantial administrative burden.

Additionally, in the event a tax surcharge is made on a property, if that property is then sold for less than £2M the taxpayer can request a refund. IHT refunds are already an administrative nightmare, imagine the chaos of Burnham's mansion tax! 

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HMRC Call Waiting Times and Letter Response Times

 

I asked Claude to present me with the statistics about HMRC's customer service standards over the last 5 years wrt call answering times and letter response times.

Here is its response: 

"Here's the trend for HMRC's two biggest phone lines over the last five years. Both got dramatically worse until 2022-24, then started improving — though not at the same pace.

 

Call answer times (minutes:seconds)

Year	Self Assessment helpline	Employers helpline
2020-21	15:12	09:07
2021-22	17:07	12:03
2022-23	25:14	16:03
2023-24	37:15	22:20
2024-25	23:40	26:32

The Self Assessment line peaked at over 37 minutes in 2023-24 (the year the Public Accounts Committee accused HMRC of deliberately degrading phone service to push people online) before improving to 23:40 in 2024-25. The Employers line went the other way — it kept getting worse into 2024-25, largely because of industrial action from December 2024 to June 2025. Overall call-answering rate (percentage of adviser attempts handled) was 71.5% in 2024-25 against an 85% target; it's since climbed to around 83–84% for April–September 2025.

Letter/correspondence response times (% answered within 15 working days, target 80%)

Year	% within 15 days
2020-21	Below target (pandemic-era decline)
2021-22	45.5%
2022-23	73%
2023-24	76%
2024-25	76.9%
Q1 2025-26 (Apr–Jun)	69.5% (dip — staff pulled onto phones for the Self Assessment peak)
Q2 2025-26 (Jul–Sep)	78.9%, improving to 87% by quarter end

Post has consistently missed its 80% target every year for the last five years. The lowest point was 2021-22, during the pandemic backlog, when fewer than half of letters got a reply within 15 days.

The bigger picture: the National Audit Office found taxpayers collectively spent 798 years on hold in 2022-23 and 558 years in 2024-25 — an improvement, but still enormous. HMRC received £51m in extra funding in May 2024 and a further £500m from the 2025 Spending Review, aimed at getting 90% of customer interactions to self-service/digital channels by 2029-30 (currently around 70-80%, depending on the quarter). Both call answering and 15-day correspondence figures remain below HMRC's own targets as of the latest published data (Q2 2025-26)."

I queried the letter response figures: 

"Good instinct to question that — the "% within 15 working days" figure hides a lot. Let me dig into the actual average/median wait, not just the target-hit rate.You're right to push on that — and the "76.9% within 15 days" headline is misleading in an important way.

That statistic is a blended figure across simple correspondence — the bulk of what HMRC receives is straightforward stuff (change of address, simple claims, acknowledgements) that genuinely can be turned around fast. It's not representative of complex cases.

For anything more involved, the picture is very different:

• HMRC runs an official "check when you can expect a reply" tool that individuals can use to see expected wait times for specific types of query. One RSM UK review found the tool showing a response time of 203 days (29 weeks) for online applications and letters requesting repayment, and 147 days (21 weeks) for paper returns.
• Accountants and agents routinely report enquiry cases, complex repayment disputes, and non-standard correspondence taking 3–10+ months, based on forum and professional-body accounts — well beyond the "average" 15-day figure.
• HMRC's own internal guidance sets separate targets for dealing with correspondence within both 15 and 40 working days, and instructs staff to send an interim acknowledgement — rather than a full reply — when the 15-day target can't be met. That acknowledgement can itself count toward "responding," while the substantive reply comes much later.

So the two things you've heard are both true and not really in conflict: the headline stat (which drives the target) covers the mass of simple, quickly-resolved post; the "several months" experience is what happens once your letter falls into a queue for anything requiring actual casework — enquiries, disputes, complex repayments. 

HMRC doesn't publish a clean average/median turnaround time across all correspondence types in its regular statistics, which is part of why the gap between the headline % and lived experience is so wide. If you want, I can dig further into whether there's a published median/mean figure (rather than just % hitting the 15-day target) for a specific type of correspondence you're dealing with."

 

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Timing Is The Key To Successful Tax Planning

 

Good to see Harry and Meghan achieve 6 full tax years of non-UK residency to manage the “temporary non-resident” rules for capital gains tax 😬

They have clearly had some good tax advice and the timing of their move back to the UK is immaculate 👌https://t.co/a8koinBHLK

— Nimesh Shah (@nimshah14) August 20, 2026

 

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Heads Up HMRC!

I know you let Rayner off, but still have a looksy eh?

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HMRC's Four Day Week

 

HMRC’s Whitehall HQ Barely a Fifth Full on Fridays – While They Demand You File On Time And Answer Every Letter

Whilst we are still stuck in the real world of Monday-to-Friday graft answering HMRC’s endless demands, their own staff treat Fridays like a national holiday.

New figures obtained by Guido Fawkes’ FOI Unit reveal the glorious reality of HMRC’s flagship headquarters at 100 Parliament Street. On working Fridays between April 2025 and March 2026, the place was barely a fifth full. Average Monday-to-Thursday attendance was 358 people. On Fridays it plunged roughly 43% lower. The best Friday of the entire year managed just 264 bodies — still well below a normal weekday.

HMRC helpfully reduced desk capacity from 516 to 391 in 2025. Even with fewer desks, Monday-to-Thursday attendance averaged a respectable 89%. Fridays? A pathetic 50%. Half the desks empty. Taxmen sticking their feet up, doing the laundry, or working from the sofa while the rest of us keep the economy going.

And yet the official line remains pure gold: “We expect all office-based colleagues to spend at least 60% of their working time in an HMRC office.” Hybrid working, they claim, helps them “attract and retain the talent we need to deliver for our customers.”

Deliver for customers? 

The same customers who wait an hour on hold, get hung up on deadline day, wait years for refunds, and face quarterly MTD reporting while HMRC’s own office stands half-empty every Friday?

This is the department that lectures the self-employed about digital record-keeping, demands perfect compliance, and sends debt collectors after pensioners for £47. Meanwhile their own staff treat Fridays as optional and the building looks like a ghost town.

Four-day week creeping in by the back door? Looks that way. Just don’t expect any four-day week for the rest of us when the next brown envelope arrives.

Tax does have to be taxing.

But when HMRC’s own flagship HQ is barely a fifth full on Fridays while they insist on 60% attendance and still can’t deliver basic service? That’s not taxing — that’s institutional hypocrisy with empty desks as the evidence.

Work from home on Fridays by all means, lads. Just stop pretending you’re delivering world-class customer service while the lights are off.

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HMRC to Automatically Sign Up MTD Taxpayers From September

 

HMRC to Automatically Sign Up MTD Taxpayers From September – Because Voluntary Compliance Was Too Soft

Just when you thought Making Tax Digital for Income Tax Self Assessment (MTD ITSA) couldn’t get any more heavy-handed, HMRC has decided to stop asking nicely.

From September, the taxman will start automatically signing up eligible taxpayers for MTD. No more polite invitations. No more “please join when you’re ready”. If your qualifying income (self-employment and/or property) is over the threshold, they’ll just enrol you whether you like it or not.

This is the same department that still can’t answer the phone without putting you through an hour of hold music, takes years to process refunds, and harasses 93-year-old terminally ill veterans over returns they’ve already filed. Yet somehow they’ve found the time and resources to force every eligible person into their digital quarterly reporting regime.

Let’s remind ourselves what this actually means:

• You’ll need compatible software
• You’ll have to keep digital records all year
• You’ll submit quarterly updates instead of one annual return
• Miss a deadline and the new penalty points system starts ticking
• All while HMRC’s own systems remain a creaking, unreliable mess

The soft landing and voluntary period were always a mirage. Now the gloves are off. From September they’ll start dragging people in automatically so that by April 2027 (and the lower £30k threshold) the net is fully cast.

This is classic HMRC: demand more data, more frequency, more compliance from you, while their own customer service, processing times and basic competence remain an absolute shambles. They’re happy to use AI and force automation on accountants, but when it comes to their own digital services they still can’t get the basics right.

Tax does have to be taxing.

But automatically signing people up to quarterly digital reporting while the department itself remains incapable of answering a simple phone call or processing a refund in under two years? That’s not taxing — that’s digital dictatorship dressed up as modernisation.

Get ready. The quarterly grind is coming whether you want it or not.

 

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