Recommendations & Conclusions
4 items
4
Conclusion
3rd Report - HMRC Customer Service and…
Acknowledged
HMRC does not provide an efficient means for taxpayers to communicate digitally with HMRC. In 2022–23, HMRC received 22 million items of correspondence, including physical post and forms and interactive forms. Approximately 70% of this comes in through the post. Postal correspondence, as well as some electronic correspondence, requires scanning, …
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HMRC does not provide an efficient means for taxpayers to communicate digitally with HMRC. In 2022–23, HMRC received 22 million items of correspondence, including physical post and forms and interactive forms. Approximately 70% of this comes in through the post. Postal correspondence, as well as some electronic correspondence, requires scanning, manual entry into HMRC’s systems, or both. In the past HMRC has faced large backlogs in processing its correspondence, clearing only 45.5% in 2021–22 within 15 working days of receipt. HMRC’s performance improved to 76.3% in 2023–24 but was still below its target of 80%. HMRC also posts a lot of correspondence itself, spending £68 million on postage and print costs in 2022–23. HMRC said it has used emails with customers sparingly due to security concerns, but it has made little progress in developing alternative secure ways for customers to share information with it electronically. It acknowledges it is clearly behind many other organisations in providing the ability for customers to securely message HMRC digitally. It says that it envisages customers doing this more through the HMRC App and the Personal Tax Account, and is seeking investment for this development as part of its ‘digital roadmap’. recommendation As part of its digital roadmap, HMRC should prioritise introducing systems for customers to submit files and send secure messages electronically to HMRC. This should enable savings which can be recycled into improving its service.
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Government response AI summary
The government agrees with the recommendation to prioritise secure digital communication channels as part of its digital roadmap, affirming this will improve customer service and increase yield.
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HM Treasury
12
Recommendation
3rd Report - HMRC Customer Service and…
Acknowledged
While the use of digital services has increased, HMRC still estimates that 66% of telephone calls could have been handled online. HMRC said this partly reflects customer awareness of the extent of its digital services. It started a campaign in November 2024 to increase awareness, particularly of its mobile app.26 …
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While the use of digital services has increased, HMRC still estimates that 66% of telephone calls could have been handled online. HMRC said this partly reflects customer awareness of the extent of its digital services. It started a campaign in November 2024 to increase awareness, particularly of its mobile app.26 HMRC said it also reflects a lack of customer confidence, with customers wanting reassurance over the phone that, for example, they have done something correctly online. It said it is increasing the digital communication with its customers, for example by sending SMS messages to Child Benefit claimants to confirm it has received the claim.27 However, HMRC also recognised that not all services are available online and not all customers can go online.28 HMRC estimates around 20% of its customers, or 7 million people, need assistance to use its digital services.29 HMRC said it has increased its support for vulnerable customers by around 20% and has provided £5.5 million of funding to community and voluntary organisations for customer outreach and support.30 21 Q 72 22 Customer service, Figure 7 23 Customer service, para 2 24 Q 54 25 Report on 2023–24 Accounts, para 8 26 Q 73 27 Q 73 28 Q 55 29 Customer service, para 13 30 Q 88 10
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Government response AI summary
HMRC is considering resourcing as part of the Spending Review, further digitizing customer services, and will publish a Transformation Roadmap in 2025 outlining plans to extend digital services and provide better customer service, including measures for digital inclusion and support.
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HM Treasury
15
Recommendation
3rd Report - HMRC Customer Service and…
Acknowledged
HMRC said it uses email sparingly due to security concerns.42 Several organisations representing taxpayers and their agents wrote to us to highlight the need for a secure digital way to share files and correspondence with HMRC so that communication by post and phone became the exception.43 HMRC acknowledged that it …
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HMRC said it uses email sparingly due to security concerns.42 Several organisations representing taxpayers and their agents wrote to us to highlight the need for a secure digital way to share files and correspondence with HMRC so that communication by post and phone became the exception.43 HMRC acknowledged that it is clearly behind many other 31 Customer service, paras 17, 3.7 32 Q 92 33 Report on 2023–24 Accounts, para 9 34 Q 81 35 Q 82 36 Q 92 37 Customer service, Figure 1 38 Customer service, para 2.28 39 Customer service, para 1.5 40 Report on 2023–24 Accounts, Figure 6 41 Customer service, para 1.14 42 Q 78 43 HCSA0003 Written evidence submitted by Institute of Chartered Accountants in England and Wales; HCSA0005 Written evidence submitted by Association of Taxation Technicians 11 organisations in providing this facility.44 It said it has been exploring ways to digitise its postal services and liaising with other government bodies through the Central Digital and Data Office in the Department for Science, Innovation and Technology and the Government Digital Service.45 It said it envisages customers using the HMRC App and the Personal Tax Account for more secure messaging, and is seeking investment for this development as part of its ‘digital roadmap’.46 44 Q 79 45 Q 80 46 Qq 78-79 12 3 Collecting more revenue Managing tax debt
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Government response AI summary
HMRC is considering options to enhance and improve its current services to give taxpayers and intermediaries secure digital channels for communication and document exchange.
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HM Treasury
21
Recommendation
3rd Report - HMRC Customer Service and…
Acknowledged
HMRC said that its calculation of the tax gap uses estimation and judgement, and that some parts of it are more certain than others.62 It said in October 2024 it published experimental statistics on the proportion of the tax gap that comes from foreign income. In monetary terms, HMRC 55 …
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HMRC said that its calculation of the tax gap uses estimation and judgement, and that some parts of it are more certain than others.62 It said in October 2024 it published experimental statistics on the proportion of the tax gap that comes from foreign income. In monetary terms, HMRC 55 Q 36 56 Report on 2023–24 Accounts, para 5 57 Q 15 58 Q 19; Report on 2023–24 Accounts, para 5 59 Qq 16, 19, 33 60 Qq 21-22 61 Q 29 62 Q 20 14 estimated this at £0.3 billion. HMRC said this represents only one aspect of the offshore tax gap and is uncertain, and that the data published in 2024 relates to undeclared or under-declared tax in the year 2018–19.63
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Government response AI summary
HMRC will assess the feasibility of extending the published estimate of the tax gap arising from undisclosed foreign income, including engaging with academics and scaling up compliance activity.
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HM Treasury