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HMRC Helpline Closure | A Challenge for Taxpayers

Published by Chirag
Published Date: June 12, 2023 , Updated Date: April 17, 2024
Categories: Property Tax News

In an unexpected turn of events, the HM Revenue & Customs (HMRC) has decided to suspend one of its most relied-upon helplines for the summer, leaving over a million taxpayers grappling with uncertainty.

The self-assessment helpline, a critical resource for many, will be out of service for three months starting Monday, a decision that has ignited a storm of criticism and concern.

The Summer Shutdown: A Controversial Move

The decision to suspend the helpline coincides with a significant decrease in the number of civil servants in the office due to the recent hot weather.

Government data reveals that a mere 32% of HMRC staff were in the office last week, a drastic drop from 50% two weeks prior. This has raised serious questions about the HMRC's customer service, which has been lambasted by MPs for being "unacceptable". The decision to suspend the helpline and redeploy 350 staff elsewhere has been described by accountants and tax experts as a “cry for help”.

A Cry for Help or a Strategic Misstep?

The suspension of the helpline, which fields around 5 million calls each year, has been met with vehement criticism from tax advisers, accountancy bodies, and charities.

They argue that this decision lays bare the chaos at the tax office and is a clear indicator that HMRC is struggling to meet the demands of a growing and complex tax system. Richard Drax, the Tory MP for South Dorset, pointed out the peculiar coincidence of the helpline being switched off as the sun comes out and the shift to online work when only a third of HMRC staff have been going to the office.

The Taxpayer's Plight

The suspension of the helpline will undoubtedly have a significant impact on taxpayers. In the past six months, taxpayers have reported being left on hold for over an hour to speak to an HMRC adviser, while others had to wait for months to receive their tax repayments.

With the helpline suspended, taxpayers will be directed towards HMRC’s online guidance, digital assistant, and web chat, which may not be as effective or accessible for all. In fact, from June to August 2022, nearly 1.2 million people called the self-assessment helpline, with over 900,000 staying on to try to speak to an adviser.

The Digital Shift: A Double-Edged Sword

The HMRC has been gradually transitioning towards digital services, reducing its customer-facing staff from 25,500 to 19,500 over the past five years.

However, this shift has not been without its challenges. More than 400 HMRC customer service advisers have recently gone on strike, highlighting the internal issues within the organisation. HMRC has also spent more than £90m on remote working technologies in the last three years, according to the Parliament Street think tank.

Looking Ahead: A Future Fraught with Uncertainty

The suspension of the helpline is not a one-off event. The HMRC plans to suspend the phone lines every summer as part of a new seasonal model of the self-assessment helpline.

This decision, however, has raised concerns about the future of customer service at the HMRC and the potential impact on taxpayers. The suspension will free up 350 full-time advisers to take urgent calls on other lines and answer correspondence, the tax office said. It defended its decision on the grounds that two-thirds of all self-assessment calls it receives “can be resolved by customers themselves online”.

Our Role as a Tax Advisory Firm: Your Ally in These Trying Times

As a tax advisory firm, we understand the importance of reliable and accessible customer service. We are committed to helping our clients navigate through these changes and providing them with the support they need during this challenging time.

We will continue to monitor the situation and provide updates as necessary.

The Digital Dilemma: A Barrier for Many

While HMRC is suggesting that during the closure taxpayers can go online to resolve issues, there are many tasks such as cancelling a tax return or chasing a refund which can only be done by calling the helpline. For some, going online will not be an option.

The digitally excluded will be left with no other option other than to wait for the phone lines to reopen in September or write a letter to HMRC. In 28% of cases, HMRC takes over two weeks to respond to a taxpayer’s letter.

The Future of Taxpayer Service: A Bleak Winter Ahead

The announcement also came just three weeks after HMRC launched a campaign urging taxpayers to file their tax return early this year.

Tax experts warned the shutdown will drive a last-minute rush to the phone lines this winter, piling more pressure on HMRC and resulting in even longer delays ahead of the self-assessment deadline of January 31. 

HMRC said it is hoping to close the phone lines every summer from now on as part of a new seasonal model of the self-assessment helpline. The shutdown will free up 350 full-time advisers to take urgent calls on other lines and answer correspondence, the tax office said.

Conclusion

The closure of the HMRC helpline this summer is a significant development that will impact many taxpayers.

As a tax advisory firm, we are here to help our clients navigate these changes and provide the support they need. We will continue to monitor the situation and provide updates as necessary. We encourage our clients to contact us with any questions or concerns.

Chirag
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