HMRC blunder exposed just days before major tax | European Markets

The HMRC is below fire after a report revealed that just about 44,000 callers have been cut off final yr whereas ready over an hour to talk with an adviser.

The revelation comes simply days earlier than the self-assessment tax deadline on January 31, raising considerations concerning the authority’s capability to deal with the surge in demand.

A report by the Public Accounts Committee (PAC) discovered that HMRC’s customer support had worsened considerably, accusing the tax authority of “damaging trust in the tax system.”

The committee highlighted that the quantity of callers cut off during the 2023-24 financial yr was six occasions increased than the earlier yr, as HMRC’s systems did not deal with the call volumes.

The PAC report revealed that within the first 11 months of the present financial yr, 43,690 prospects have been disconnected after ready an average of 70 minutes.

Prospects weren’t knowledgeable that their calls can be terminated nor provided callbacks.

Claire, one affected buyer, shared her expertise with the BBC, saying she was repeatedly cut off and needed to resort to sending letters, two of which have been “lost” by HMRC.

“It was very, very difficult,” she mentioned. “If you’re elderly like my parents, you’d be stuffed.”

Jim Harra, HMRC’s chief govt, dismissed claims that the poor telephone service intentionally pushed prospects online.

He defended the authority’s efforts, stating that average call wait occasions had decreased by 17 minutes since April 2023 and that 80% of prospects have been happy with its digital companies.

Nonetheless, Sir Geoffrey Clifton-Brown MP, chair of the PAC, criticized HMRC’s efficiency, stating it was “excavating its way to new lows” and accused the authority of degrading its telephone companies as a coverage.

The committee’s report additionally criticized HMRC’s handling of tax money owed and offshore tax gaps. It revealed that £5 billion in money owed have been written off as uncollectable in 2023-24, up from £3.2 billion the earlier yr.

Moreover, there have been considerations about declining charges of legal investigations and prosecutions for tax-related offences.

The PAC referred to as for “bold and ambitious leadership” to deal with these points and improve buyer companies.

The upcoming self-assessment tax deadline might place an even better pressure on HMRC’s companies. Sir Geoffrey famous that HMRC was lagging behind different authorities departments, such because the Passport Workplace, in offering dependable digital companies, which forces many shoppers to depend on telephone traces.

The report additionally referenced a controversial choice final yr to close telephone traces between April and September, a transfer that was reversed within 24 hours following public backlash.

Regardless of the criticisms, Mr Harra mentioned: “We will always be there to answer the phone for those who need extra help. At the same time, more and more people are using our digital services to quickly and easily manage their tax affairs.”