Wednesday, 22 January 2025

HMRC's Disgraceful Decline: A Deliberate Strategy to Frustrate Taxpayers

 
In a scathing report that has rocked the corridors of Britain's tax authority, the Public Accounts Committee (PAC) has accused HM Revenue & Customs (HMRC) of not just failing its taxpayers but actively sabotaging its own customer service. This isn't just a case of inefficiency; it's a calculated move to degrade service quality, pushing people towards digital platforms they might not be ready or able to use.

Parliament's spending watchdog, through its latest report, has spotlighted the dire state of HMRC's telephone services, with average call waiting times now a staggering 23 minutes - a figure that has nearly doubled in just two years. This isn't merely an inconvenience; it's a deliberate strategy to erode public trust in the tax system, as the PAC has starkly highlighted. The report points out that this degradation has left taxpayers feeling abandoned by the very institution that should be supporting them through their fiscal responsibilities.

The evidence is damning. Over the last year, HMRC has only managed to answer 66.4% of calls attempting to reach an adviser, falling significantly short of its own 85% target. This isn't just about long waits; it's about the service's collapse under the weight of demand. In 2023-24 alone, 44,000 callers were unceremoniously cut off after waiting for 70 minutes, with no warning or follow-up. This isn't the mark of an organisation striving for excellence but one that has seemingly resigned itself to mediocrity, or worse, one that's content to let its services fail.

HMRC's response has been nothing short of defensive, with Jim Harra, the chief executive, labelling the criticisms as "completely baseless." Yet, the numbers tell a different story. A story where customer service has not just stagnated but plummeted, with taxpayers left in the lurch as they attempt to navigate increasingly complex tax rules or rectify issues with their tax returns. The claim that wait times have been reduced by 17 minutes since April of the previous year seems hollow when set against the backdrop of these extended waits still being the norm.

The push towards digital services, while seemingly progressive, appears less about enhancing user experience and more about offloading the responsibility of service onto the taxpayer. This strategy has been criticised for not considering the needs of those less digitally savvy or those who require personal interaction for complex issues. The PAC has rightly pointed out that this "digital-first" approach has been implemented before ensuring that digital services are adequately supportive or user-friendly for all taxpayers.

Moreover, this decline in service quality comes at a time when HMRC reported its highest revenue collection on record, suggesting not a lack of resources but perhaps a misallocation of priorities. The trust in the tax system, as noted by the PAC, has been significantly damaged, not by the complexity of taxes themselves but by the sheer frustration of dealing with HMRC's customer service.

The implications are profound. At a time when the government should be fostering trust and encouraging compliance, HMRC's actions are doing the opposite. They're creating a divide where only those who can navigate the digital labyrinth or afford external help can manage their tax affairs effectively. This isn't just a degradation of service; it's a degradation of equity and fairness in the tax system.

HMRC needs to shift from defensive rhetoric to constructive action. The call is clear: reinstate targets for call waiting times, ensure accurate wait time estimates, offer callback services, and most importantly, stop treating taxpayers as an inconvenience to be shuffled online. Until then, the trust in HMRC will continue to erode, not by accident, but by design.


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7 comments:

  1. Harra is waltzing off in to the sunset in twelve weeks on a nice pension. I'm sure punters hanging on the phone won't keep him up at night.

    Obfuscation, new speak, plausible denial, simply not true's. Where have I heard that lately ?

    1984

    ReplyDelete
  2. America is about to set up an External Revenue Service, for Tariffs, as well as IRS. Let's hope that if something similar is developed in the UK, the responsibility isn't given to the current HMRC. They couldn't run a bath.

    The horse shit continues here, 'continuously strives'. Same drivel and excuses for the last twenty years.

    https://www.independent.co.uk/money/hmrc-should-take-seriously-recommendations-says-spending-watchdog-chairman-b2684454.html

    ReplyDelete
    Replies
    1. The US already has an external revenue service, it's called US Customs.
      The ERS bs comes from Trump's misunderstanding of how tariffs work. They are paid by the US buyer, not the foreign seller. This is what happens when you elect a stable genius.

      Delete
  3. And not helped by a truly shitty phone system we have in place, that keeps failing.

    ReplyDelete
    Replies
    1. Who is this "we" that you speak of??

      Delete
  4. Another sound bite bonanza from HMRC. 5000 new Tax Inspectors, if they were recruited tomorrow they'll only be qualified by 2030.

    https://www.gbnews.com/money/hmrc-hire-inspector-tax-clampdown

    ReplyDelete
  5. Again, the devil is in the details. HMRC having 'deflection messages' to nudge punters on to digital platforms as well other criticisms from the NAO.

    https://www.civilserviceworld.com/professions/article/pac-chair-defends-criticism-of-hmrcs-customer-service-efforts

    ReplyDelete