New report finds HMRC performance the worst ever

By   28 February 2024

A report by the Public Accounts Committee (PAC) has found that HMRC’s services continue to deteriorate and are now at an “all time low”.

In summary, Anne Olney MP who sits on the committee said of the new report:

  • PAC expressed disappointment over the five-year decline of service levels
  • Taxpayers are “exasperated”
  • In 2022/2023 the number of callers waiting ten minutes or more for HMRC to answer has increased from 46.3% in 21/22 to 62.7%
  • HMRC stated that it “did not have the resources to meet rising demand for its phone and post services at expected standards”
  • HMRC agrees that it will not now require digital interaction until a service is of a suitable standard
  • Criminal prosecutions fell from 691 in 2019/20 to 240 in 2022/23 which “sends the wrong message” (my comment: although this could partly be due to backlogs in the criminal justice system)
  • The report results were “quite predictable” and were a “letdown for taxpayers”
  • It is “distressing” to find people who “want to get it right, and who have no intention whatsoever of defrauding the Exchequer, but just find it really, really difficult to access the right support”.
  • In failing to access the right support, taxpayers are liable. It is not on HMRC – even if the services are difficult to access, it is still the responsibility of the taxpayer to pay the right amount of tax
  • There is “probably” a need for more investment and recruitment
  • A smarter allocation of the resources HMRC has could see a better return for taxpayers
  • Finally: “It really is important that HMRC get this right.”

In terms of VAT, we can confirm from personal experience that HMRC’s performance is at an unacceptably inferior level; from telephone responses, to written replies and a generally poor “attitude”. This is supported anecdotally by clients and colleagues’ experiences.