ICAEW urges industry collaboration to resolve HMRC backlogs

All relevant parties must work together to identify and resolve issues within HMRC’s systems to help improve its customer service levels, according to John Cullinane, director of public policy at the Chartered Institute of Taxation (CIOT). 

The ICAEW has recommended to the government that ministers must create an emergency taskforce to combat HMRC’s “unacceptable” customer service as it is hindering the UK’s economic growth. 

Michael Izza, CEO of the accounting trade body has called for the immediate creation of a cross-sector taskforce to address the long-standing delays at HMRC in a list of recommendations made for the upcoming spring budget.   

Cullinane says, “deficiencies within HMRC’s systems can also introduce errors which then require correction.  

“It’s vital that we work together to identify and resolve these issues, which will enable HMRC’s resources – and those of its customers and their agents – to be better deployed.” 

Izza believes the new taskforce should include representatives from professional bodies and from businesses who would be “empowered” to advise HMRC.     

HMRC has recently received backlash for its failing customer service levels after decreasing staff numbers from 25,500 to 19,500 in the last five years.      

Izza says the ICAEW is asking ministers to set up the emergency taskforce to “identify steps to eliminate HMRC’s backlog and improve its service standards so that in the future it supports, not inhibits, business growth and maximises the tax receipts needed to fund public services.” 

HMRC plays a vital role in supporting business growth but admits its services are often “overlooked and overstretched” which has led to these severe delays, Izza notes.   

Further criticisms of HMRC customer service 

In January 2023, the Public Accounts Committee (PAC) published a report saying it was “unconvinced” that HMRC’s plans to address its customer service problems would succeed quickly enough.   

The PAC set a deadline of three months for HMRC to create a plan to rectify its struggling customer service.   

“Given how deep-seated and long-standing the problems with HMRC service performance are, the time frame of three months suggested by PAC is reasonable, so long as work starts immediately,” Caroline Miskin, ICAEW Senior Technical Manager, Digital Taxation, commented for Accountancy Age. 

The fear for Miskin is if HMRC is hit with strike action by its employees, this could “make matters worse”.   

Over 100,000 civil servants are expected to strike on budget day (15 March) due to unacceptable pay offers amid the current economic climate.  

In response to the criticism, a HMRC spokesperson said: “We are responding to around three-quarters of correspondence within 15 working days and successfully answering about 70,000 calls a day. Our customer satisfaction is consistently around 80 per cent.”

“We’re continuing to improve and expand our digital services, so more customers can answer their queries online and our advisers can focus on supporting customers who require one-to-one support.”