HMRC and the Valuation Office Agency (VOA) have responded to the 'Adjudicator's Office annual report 2024' acknowledging that this was a difficult period with serious challenges in delivering customer services.
HMRC currently operate a two-tier complaints system. Should a taxpayer feel that their complaint has not been handled correctly by HMRC's internal process, they can use the independent Adjudicators Office (AO).
The AO annual report highlights trends and provides insight into HMRC’s complaints handling service.
The 2023-24 report highlighted:
- The AO received 1046 complaints from HMRC, up from 950 in the previous year.
- Complaints received from the VOA remained steady, only increasing from 57 to 58.
- The AO resolved 843 HMRC complaints an increase of 34% on the previous year.
The main complaint was taxpayers unable to access HMRC help through the phone lines and was exacerbated by the trial Closure of the self-assessment helpline during June and September 2023.
The closure of the phone line was to:
- Encourage taxpayers to seek help online.
- Free up HMRC staff to enable them to prioritise those who need support most.
In January the Public Accounts Committee (PAC) accused HMRC of seeking to "degrade its telephone service to drive taxpayers to digital channels" and consequently an "already poor service to taxpayers has become even worse".
HMRC announced in March 2024, that they would not be continuing with plans to permanently close the self-assessment, VAT and PAYE phone lines.
Other primary areas of complaint are lengthy delays in the time HMRC take to resolve issues with the AO finding that as in previous years, there tends to be a ‘cyclic’ process to HMRC complaints handling process:
- Complaints increase in volume.
- HMRC take recovery action to reduce wait times.
- The cycle begins again.
However, the AO has stated that HMRC appear to have turned a corner in recent months, acknowledging the ‘cyclic’ process and getting back to reasonable service levels.
This year HMRC:
- Are committed to empowering frontline staff to navigate issues at first contact with the taxpayer to avoid issues developing into a complaint.
- Announced more phone lines would be closed this year to encourage taxpayers to move to digital services but later reversed this decision after criticism.
- Are committed to moving more services online after data have suggested service is considerably better through HMRC’s digital channels.
The AO has published, for the first time, a ‘level 3 report’ that takes a significant look into particular areas. The level 3 report specifically highlighted that HMRC do not always take account of taxpayers' needs despite having the resources to do so.
Despite an increase in complaints, the AO stated that HMRC's complaints handling appears to be improving. HMRC are continuing to develop digital services which will encourage taxpayers to resolve problems via digital channels.
Additionally, HMRC have:
- Updated their complaints page.
- Made the complaints pages easier to navigate.
- Launched an online form allowing taxpayers to complain digitally.
HMRC have now commented on the AO’s report.
- They acknowledge that there had been a high number of complaints in this period, blaming financial pressures and taxpayers with more complex tax issues.
- They are encouraging taxpayers to use digital services to resolve issues.
- HMRC intend to support complaint handlers with training to resolve issues at the first point of contact. A quality strategy has been launched to identify additional training requirements.
- HMRC will further the development of a digital complaint service.
- Internal guidance has been updated to support complaint handlers, particularly when identifying vulnerable clients.
Useful guides on this topic
Time to pay agreement
Businesses and self-employed taxpayers with outstanding tax liabilities may be eligible for support with their tax affairs through HMRC’s Time To Pay service.
How to appeal an HMRC decision
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Grounds for appeal: Legitimate expectation
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