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Select Committee · Public Accounts Committee

HMRC Customer Service and Accounts 2023-24

Status: Closed Opened: 31 Oct 2024 Closed: 3 Apr 2025 10 recommendations 12 conclusions 1 report

HMRC reported the highest tax revenues on record in 2023-24, reflecting the freezing of income tax bands and thresholds, and an increase in the rate of Corporation Tax from 19% to 25%. Tax debt has now fallen marginally, but remains significantly higher than before the pandemic - £43bn in March 2024, down 1.9% since 2023, …

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Reports

1 report
Title HC No. Published Items Response
3rd Report - HMRC Customer Service and Accounts HC 347 22 Jan 2025 22 Responded

Recommendations & Conclusions

4 items
4 Conclusion 3rd Report - HMRC Customer Service and… Acknowledged

Prioritise introducing systems for customers to submit files and send secure digital messages.

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, …

Government response. 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.
HM Treasury
12 Recommendation 3rd Report - HMRC Customer Service and… Acknowledged

Many calls could be digital, yet some services remain offline and customers need assistance.

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 …

Government response. 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.
HM Treasury
15 Recommendation 3rd Report - HMRC Customer Service and… Acknowledged

HMRC lags in secure digital file sharing; plans secure messaging via app and tax accounts.

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 …

Government response. HMRC is considering options to enhance and improve its current services to give taxpayers and intermediaries secure digital channels for communication and document exchange.
HM Treasury
21 Recommendation 3rd Report - HMRC Customer Service and… Acknowledged

HMRC's tax gap estimations, particularly for offshore and foreign income, remain uncertain.

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 …

Government response. 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.
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
28 Nov 2024 Justin Holliday · HMRC, Myrtle Lloyd · HMRC, Sir Jim Harra · HMRC View ↗

Correspondence

4 letters
DateDirectionTitle
4 Sep 2025 To cttee Letter from the Chief Executive and First Permanent Secretary of HM Revenue and…
6 Feb 2025 From cttee Letter to the Chief Executive and First Permanent Secretary of HM Revenue and C…
22 Jan 2025 From cttee Letter to the Permanent Secretary of HM Revenue and Customs relating to Third R…
22 Jan 2025 To cttee Letter from the Permanent Secretary of HM Revenue and Customs relating to Third…