Do HMRC's customer service woes demand accountant intervention?

HMRC’s telephone customer service is failing to meet expectations, with taxpayers experiencing an average wait time of nearly 23 minutes in the first 11 months of 2023-24, a significant increase from five minutes in 2018-19, according to a new National Audit Office (NAO) report.

This prolonged wait time highlights the pressing need for improved customer service and support for taxpayers navigating the system.

Key Findings from the NAO Report

1. Unmet Service Expectations

The NAO report reveals that customers cumulatively spent 798 years on hold in 2022-23, more than double the time in 2019-20.

Despite HMRC’s strategy to shift to digital services, the move has not eased pressure on traditional services as expected. The quality of service provided by HMRC telephone and correspondence has been below target levels for several years.

2. Increased Call Handling Time

While the total number of calls has reduced, advisers are taking more time on average to answer calls and handle fewer calls than in 2019-20. Many avoidable customer calls are caused by HMRC’s own process failures and delays, which result in customers chasing progress on their queries.

3. Staffing Challenges

Despite a planned reduction in staff numbers due to budgetary constraints, HMRC has only achieved a 9% reduction between 2019-20 and 2023-24, falling short of its target. In 2024-25, HMRC needs to cut staff numbers by 14% amid continuing budgetary pressures.

“While we welcome the government’s £51 million investment in HMRC service levels, the National Audit Office report lays bare the significant drop in customer service levels. It begs the question is the £51 million investment already promised going to be enough to make the significant improvements necessary?” asks Susan Ball, employment tax partner, RSM UK.

“It’s likely to take some time for performance levels to shift, as new staff will need significant training to navigate and advise on our complex tax system.

Strategies for Accountants to Support Clients with HMRC

The NAO’s findings indicate several areas where accountants can play a critical role in supporting clients and improving overall interactions with HMRC:

Proactive Client Support

Accountants should advise clients on the best practices for utilizing HMRC’s digital services effectively. Educating clients about these tools can help reduce reliance on HMRC’s overwhelmed phone services and minimize wait times.

Streamlined Communication

Encouraging clients to use secure electronic networks for sending correspondence and documentation can help reduce avoidable and expensive forms of contact with HMRC. This approach not only saves time but also ensures quicker resolution of issues.

Advocacy and Feedback

Accountants can serve as advocates for their clients by providing feedback to HMRC on service issues and pushing for more customer-focused improvements. Engaging with HMRC’s stakeholder consultations can help ensure that the needs of taxpayers are better understood and addressed.

Call to Action for Accountants

“With around 34 million taxpaying individuals, and over 5 million businesses relying on HMRC for advice and support, the current lengthy wait times are not just an inconvenience for taxpayers. They are a drain on UK productivity, preventing tax advisers from supporting clients, and hampering business productivity. It may be time for the government to consider making HMRC a ministerial department, so it has the proper investment, oversight and focus needed to support taxpayers properly,” says Ball.

As the NAO recommends that HMRC develops more realistic plans for cutting services replaced by digital channels and adopts a customer-focused approach, accountants must stay informed about these changes.

By guiding their clients through these transitions and advocating for better service standards, accountants can help alleviate some of the burdens faced by taxpayers.

For further details on the NAO report and to read the full findings, visit the NAO website here.