HMRC’s Annual Report 2025/26: Record Tax Haul, Shiny Digital Stats, But The Same Old Customer Service Shambles
HMRC has just dropped its 329-page annual report for 2025/26, and true to form, they’re out there blowing their own trumpet while the rest of us choke on the reality.
They collected a whopping £966.4 billion in tax —
that’s £90.4 billion more than the previous year. Compliance yield
smashed through £50 billion for the first time. Digital interactions are
up to 78%. They’ve hired more compliance officers. Everything’s going
swimmingly, right?
Bollocks!
Scratch beneath the glossy headlines and the strains are bleeding
through everywhere. Yes, they’re raking in more cash (largely thanks to
Reeves’ stealth taxes, frozen thresholds, and employer NI hikes) but
the basics that actually matter to real people remain an absolute disgrace.
Customer service? Still in the toilet. They only managed to answer 85.1% of calls (one in seven went unanswered), with average wait times of over 12 minutes.
They’re proudly pushing everyone towards webchats and the “highly
successful” HMRC app while real human help remains a distant dream. This
is the same department that hangs up on Self Assessment deadline day
and harasses 93-year-old terminally ill veterans.
Tax debt sits at £44.7 billion. They’re resolving
more of it, sure, but it’s still a monumental pile of unpaid tax while
they chase pensioners for peanuts. The tax gap? Still hovering around
£60 billion. Small businesses (the ones actually trying to grow) remain
the biggest contributors to the gap — funny how that works when HMRC
makes compliance such a nightmare.
R&D tax relief errors and fraud are so bad the accounts had to be qualified again. Yet they’re happy to sit on legitimate startup R&D claims for months, leaving businesses £95k out of pocket.
The transformation roadmap? More MTD misery, more AI toys (£175m with
Quantexa), more digital-first bullshit while the phone lines stay
broken and trust collapses. Only 70% of small businesses trust HMRC. For individuals it’s even worse, over half don’t trust them at all.
This report perfectly exposes the HMRC delusion: they’re getting
better at squeezing more tax out of us, but utterly failing at basic
service, fairness, and competence.
Tax does have to be taxing.
But when HMRC crows about record
revenues and digital progress while the public endures endless delays,
incompetence, and contempt? That’s not taxing — that’s institutional arrogance funded by your money.
Well done on the big numbers, lads. Now try answering the bloody phone.
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