HMRC is set to implement a yearly summer hiatus for its telephone services as part of a strategy to encourage more online interactions.
Spanning from April 8 to September 29, a period of six months, taxpayers will find themselves unable to contact the tax office via phone for assistance with their tax returns. This initiative, according to the tax office, will be an annual occurrence, designed to reallocate helpline resources to areas of greater need.
This move arrived shortly after the Public Accounts Committee, a prominent assembly of MPs, criticized HMRC for reaching a new low in customer service quality.
Recent data revealed that in January, HMRC’s peak month, close to a million calls remained unanswered. This was a critical time for taxpayers who were rushing to submit their payments on account self-assessment tax returns to avoid automatic late penalties.
On average, callers who managed to connect with HMRC faced a 25-minute wait time.
The half-year shutdown aligns with a new “annualised hours” trial, involving 100 customer service employees. This pilot will see these staff members working a reduced three-day week during the summer, typically a less busy period for the tax office, and then compensating with additional hours in the winter months.
This decision to permanently reduce helpline availability follows a trial closure that took place from June 12 to September 4 the previous year.
This experiment faced significant backlash from accounting organizations and Members of Parliament, with the Treasury Select Committee intensely questioning HMRC last year about the decision, which was announced with a mere four days’ notice.
Nonetheless, HMRC described the seasonal trial as “successful,” noting that while there was an initial surge in calls when the helpline reopened, the volume soon stabilized to normal levels.
Harriett Baldwin, Chair of the Treasury Select Committee, expressed disappointment: “It’s truly regrettable that HMRC has chosen this moment to effectively shut down telephonic communication channels for significant portions of the year. I must reiterate, these are individuals earnestly attempting to comply with their tax obligations.
“The committee has repeatedly heard about the push towards online solutions for tax queries. While we support initiatives aimed at streamlining the tax process, HMRC has not convincingly shown that either the department or the public are prepared for such a drastic shift in handling tax matters.”
“This transition should not be imposed on taxpayers without clear evidence that they can navigate HMRC’s highly intricate website to manage their taxes effectively.”
There are concerns that this new “seasonal” approach to the helpline will lead to an increase in late submissions and inaccuracies in tax returns, potentially causing more complex issues later.
The Chartered Institute for Taxation has expressed worries that the summer trial might have contributed to a decrease in timely tax filings. According to official data, there were around 180,000 fewer submissions in January 2024 compared to the year before.
Gary Ashford from the CIOT criticized the decision to permanently implement the summer closure as “misguided.”
“We are extremely concerned that HMRC, despite recent criticism from the Public Accounts Committee and an inconclusive evaluation, has chosen to significantly reduce the support available to taxpayers. The initial announcement of the helpline’s summer closure was a warning sign of HMRC’s struggles, but today’s decision is an even more glaring indication.
“Even though HMRC’s own assessment of both the 2023 summer helpline closure and the restricted service during the 2024 peak self-assessment period concluded that it’s too soon to determine a long-term shift from phone to online self-service, they are proceeding regardless.”
The Institute of Chartered Accountants in England and Wales described the decision as “disappointing.” Meanwhile, Victoria Todd from the Low Incomes Tax Reform Group commented, “The current standard of HMRC’s online services, including their guidance and digital assistant, is insufficient for a mandatory shift to digital channels.
“This raises the risk of mistakes and non-compliance, potentially causing future complications for both taxpayers and HMRC.”
HMRC is increasingly encouraging taxpayers to use online services as it grapples with a significant surge in individuals seeking tax assistance. The freeze on tax thresholds is expected to push approximately three million taxpayers into the 40% income tax bracket over the next five years.
The organization has faced criticism for its flexible working policy, which permits employees to work from home two days a week.
In August, The Telegraph reported that the number of tax office staff working on-site was lower than during the lockdown period, coinciding with a decline in customer service quality.
A freedom of information request revealed that around 95% of staff were working remotely for at least one day per week at that time.
In September, HMRC had to refute claims that remote workers were handling fewer calls after data showed that two out of five employees at regional HMRC centers did not report to the office at all in the year ending in March. The authority has consistently denied that flexible working impacts service levels.
In July, HMRC established a special task force to address a backlog of mail, with thousands of letters left unanswered for over a year. This task force concentrated on processing over 37,000 pieces of correspondence that were at least 10 months old.
Moreover, HMRC is permanently closing its VAT helpline, except for the five business days preceding each monthly submission deadline.
Additionally, the “pay-as-you-earn” (PAYE) helpline will no longer handle calls regarding PAYE refunds, except for taxpayers who cannot access online services.
Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, stated: “Online services have revolutionized our daily lives and often offer a superior experience for managing taxes – they are faster, simpler, and always accessible.
“By shifting our services to promote online self-service, we can direct our helpline advisers to provide support where it’s most crucial – assisting those with complex tax issues and individuals who are vulnerable and require additional help.
“We have a responsibility to use taxpayers’ money efficiently. Adopting online self-service enables us to assist more customers and enhance our service levels without incurring extra public expenditure.”
