Thousands on hold to HMRC 'cut off after 70 minutes'

A report calls for bold action to improve customer service at HM Revenue & Customs (HMRC) in the UK. The report indicates that HMRC's customer service quality is consistently declining, necessitating decisive measures for improvement. A parliamentary committee report revealed that nearly 44,000 customers last year had their calls cut off without warning after waiting for over an hour.

HMRC denies deliberately providing a "poor" phone service to force taxpayers to seek online help. HMRC's Chief Executive, Jim Harra, responded that the committee's accusations about its customer service were "completely unfounded," adding that "our service standards have improved dramatically since last April, with telephone waiting times reduced by 17 minutes." However, the report warns that HMRC's service has worsened since then and urges the tax authority to take responsibility for failing to serve customers well.

The Public Accounts Committee (PAC) report noted that 43,690 customers had their HMRC phone lines abruptly cut off after waiting 70 minutes in the first 11 months of 2023-24. This was due to HMRC's systems being unable to handle the large volume of calls, but customers were not warned that they were about to be cut off, nor were they offered a call back. PAC Chair, MP Sir Geoffrey Clifton-Brown, stated that HMRC's customer service is "plumbing new depths" each year, adding that "worse still, it appears to be deliberately degrading its own service levels."

The committee calls for "bold and ambitious leadership" to improve customer service and better address tax system abuse and unpaid debt. In 2023-24, HMRC wrote off £5 billion in uncollectable debt, up from £3.2 billion in 2022-23. The report also calls for the tax authority to better understand the offshore tax gap, the difference between tax owed and tax actually paid. Additionally, the report expresses concern over the declining rates of criminal investigations and prosecutions for tax-related crimes.

HMRC Chief Executive Harra stated, "We will always answer the phone for those who need extra help. At the same time, over 80% of customers are satisfied with our digital services, and more and more people are using these to manage their tax affairs quickly and conveniently." These recommendations come after a series of criticisms of HMRC. Last March, HMRC announced that its phone lines would be closed between April and September, but was forced to reverse the decision within 24 hours. A report in May found that customers were waiting an average of nearly 23 minutes to speak to an advisor.