The influential Public Accounts Committee (PAC) said the taxman “degraded” its own customer helpline phone services, willing and prepared to let them fail, in the hope that people will be forced online.
In 2023-24, performance reached an all-time low, with 66.4 per cent of customers’ attempts to speak to an adviser answered, against a target of 85 per cent, and average call waiting times exceeding 23 minutes.
MPs said organisations representing taxpayers and agents believe the continual failings in customer service had eroded trust in HMRC.
HMRC’s service had got even worse since then and MPs urged the tax authority to take responsibility for failing its customers.
“Unfortunately, what we have instead is a tax authority excavating its way to new lows in service levels every year. Worse, it seems to be degrading its own services as a matter of policy. HMRC is an organisation in defensive mode, and needs bold and ambitious leadership to begin to chart its recovery.”
Jim Harra, HMRC chief executive, has written to the committee protesting its claims calling them “completely baseless”. He said: “In reality, we’ve made huge improvements to our service standards, with call wait times down by 17 minutes since April last year.
Caption: Jim Harra, HMRC chief executive hit back calling MPs claims as ‘completely baseless’. Photo: Vicki CouchmanThe report also calls on HMRC to set out a plan for how it will collect older debts owed to it before they become uncollectable, expressing concern these are not being effectively pursued.
The PAC report said while HMRC’s new goal to reduce rather than maintain the tax gap – the difference between the amount of tax that should be paid to HMRC, and what was actually paid – is welcome, tax officials needed to be “bolder in identifying and tackling abuse.”
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