The Chartered Institute of Taxation (CIOT) has warned that poor service levels at HM Revenue and Customs (HMRC) are "hammering away" at trust in the tax system.
In his inaugural speech, new CIOT president, Gary Ashford, said that HMRC has 6,000 fewer customer service staff than it did five years ago. He argued that this has led to "unacceptable" delays in processing tax returns and dealing with queries.
Ashford said that poor service levels are not just a "pain" for taxpayers and advisers, but they also "harm tax compliance, hinder business activity and hammer away at trust in the tax system".
He called on the government to provide HMRC with the resources it needs to improve its service levels.
The CIOT's warning comes as HMRC is facing increasing pressure to collect more tax revenue to fund the government's spending plans.
However, Ashford said that HMRC's focus on collecting more tax should not come at the expense of providing good service to taxpayers.
He said that "a strong economy needs an effective tax system" and that "trust is essential for an effective tax system".
What does this mean for taxpayers?
The CIOT's warning is a reminder that taxpayers have a right to expect a good level of service from HMRC.
If you are experiencing problems with HMRC, you should contact them directly to raise your concerns.
You can also contact the CIOT for advice.
What can be done to improve HMRC's service levels?
The CIOT has made a number of recommendations to improve HMRC's service levels. These include:
- Increasing the number of customer service staff
- Investing in new technology to improve efficiency
- Making it easier for taxpayers to contact HMRC
- Providing more information and guidance to taxpayers
The government has said that it is committed to improving HMRC's service levels. However, it remains to be seen whether these measures will be enough to address the concerns raised by the CIOT.
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"
