Jeremy Hunt has instructed HM Revenue & Customs (HMRC) to abandon its plans to shut down its telephone lines during the summer.
The Chancellor stepped in, instructing the tax authority to put a hold on these changes amid concerns that they might not adequately address the needs of all taxpayers.
HMRC to Shut Down Telephone Services for Half-Yearly Intervals
HMRC had previously announced that from April 8 to September 29 – six months – its phone lines would be closed to taxpayers seeking assistance with their tax returns, as part of an initiative to encourage online interactions.
A source from the Treasury stated: “While it’s beneficial to promote online self-service among customers where feasible, this should not come at the expense of the wider public, especially vulnerable individuals who rely on these helplines for assistance with tax issues.
“As a result, ministers have immediately put a stop to this planned change.”
Last month, the Public Accounts Committee declared that the level of customer service at HMRC had reached an unprecedented low.
Recent data revealed that in January, HMRC’s peak period, nearly a million calls remained unanswered as taxpayers rushed to submit their self-assessment tax returns on time to avoid automatic penalties.
On average, those who managed to connect with HMRC faced a 25-minute wait time before their call was answered.
The proposed six-month shutdown was set to align with a pilot scheme of “annualised hours,” involving 100 customer service staff working a shortened three-day week during the summer, typically a less busy period for the tax office, and then compensating with additional hours in the winter.
The Chancellor is reportedly keen on putting these changes on hold to allow HMRC to enhance its services and better meet the needs of all taxpayers.
Transition to Digital Ministers have expressed reservations about the transition to digital services, particularly the lack of adequate safeguards. They are advocating for a significant improvement in HMRC’s performance before proceeding with any such digital transition plans.
“The Treasury has promptly responded to these concerns, ensuring further engagement to determine the most appropriate course of action,” stated the source.
HMRC’s move to permanently discontinue the helpline comes after its temporary closure from June 12 to September 4 last year.
This trial faced substantial criticism from accounting groups and Members of Parliament, with the Treasury Select Committee intensely scrutinizing HMRC’s decision last year, which was made public with only a four-day notice.
Despite the criticism, HMRC described the seasonal trial as “successful,” noting an initial surge in calls when the helpline reopened, which then stabilized to normal levels.
Concerns have been raised that the introduction of a “seasonal” helpline could lead to an increase in late submissions and errors in tax returns, potentially causing more significant issues in the future.
