Shortcomings in digital services have contributed to poor customer service at HM Revenue and Customs (HMRC), according to a new report from Parliament’s Public Accounts Committee (PAC).
In its review of the department’s performance in 2022-23, it cites the issue as one of a number that have included long waits for responses to telephone enquiries. It says 63% of callers waited more than minutes to speak to an adviser, up from 46% the previous year.
While HMRC is directing callers to use digital services it says are good quality, the PAC says it has received a lot of evidence to the contrary from taxpayers and their agents.
It says several organisations had written to it during its enquiry to say HMRC had implemented its digital services poorly and with inadequate testing, and that they lacked functionality for taxpayers and agents to use them effectively.
The department has said there are still a lot of people who do not know about its array of digital services and that it needs to draw more attention to them; although it also acknowledged that it does not have the same array to deal with more complex affairs.
In response, the PAC says that HMRC and HM Treasury should ensure its customer service phonelines are sufficiently staffed to meet its service standards until its digital services meet the needs of taxpayers.
Tale of decline
Chair of the committee Dame Meg Hiller said: “Almost eight years have passed since our committee challenged HMRC over its telephone lines’ holding message being one of the most streamed pieces of music in the country.
“Our latest report into its performance sadly illustrates a continued tale of decline in its services. HMRC has decided to push taxpayers to online support but as both tax complexity and taxpayer population increase this is not good enough.”
Other findings of the report include that HMRC fell £2 billion short of its £36 billion target for compliance yield and expects to do so again, and that there has been a significant reduction in criminal prosecutions from 691 in 2019-20 to 240 in 2022-23. This has been due to a more selective approach by HMRC in using its criminal investigation powers.
