Source · Select Committees · Public Accounts Committee
Recommendation 14
14
Accepted
Taxpayer trust in HMRC has declined for most groups since the 2020 strategy launch.
Conclusion
In July 2020 HMRC and HM Treasury published the Tax Administration Strategy (the Strategy) which set out how they would build a modern, trusted tax administration system by 2030.23 As part of the Strategy they wanted to gradually increase the trust of taxpayers in HMRC. Trust is seen as vital for a tax authority to effectively discharge its role, including the willingness of taxpayers to pay the correct amount of tax on time.24 But since the Strategy was launched, trust in HMRC has declined for all taxpayer groups other than medium–sized business. 18 C&AG’s Report, para 7 19 Qq 27, 30 20 Qq 28–29 21 Q 15 22 Qq 25, 33 23 HMRC and HM Treasury, Tax administration strategy, 21 July 2020 24 C&AG’s Report, para 3.3 11 • For large businesses, trust in HMRC fell from 86% in 2020 to 70% in
Government Response Summary
The government agrees and states it has implemented the recommendation by actively working to improve trust through better services and fairness, publishing annual survey results, and confirming the publication of a Transformation Roadmap this summer to enhance taxpayer experience.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 HMRC recognises five drivers of customer trust, being perceptions of fairness, competence, transparency, reciprocity and prevalent social norms. 2.3 HMRC uses its annual customer surveys (most recently 2024), complaints data, and focus groups to understand these perceptions in driving changes in the headline measures for different customer groups. HMRC place great value on customer feedback. 2.4 Alongside good customer service, trust depends on ensuring a fair tax ecosystem by holding to account those that do not pay the correct amount of tax, in addition to other factors such as prevailing trust in government. 2.5 HMRC aims to continue improving levels of trust by being more supportive, creating a level playing field, and ensuring its services and processes are quicker, easier and help more customers to get their taxes right first time. For example: • Delivering sustained improvements in HMRC’s helpline services. • Improving digital services. • Updating guidance regarding tax avoidance schemes. • Consulting on ways to improve intermediary standards and the benefits good advisers bring to the tax system, counter those that promote avoidance, and reforming the tax administration framework. • Making improvements to services for tax advisers, such as improving the Agents Dedicated Line and Services Account, building digital transactional services and webchat for tax advisers, and introducing a pre-complaint resolution service. 2b. PAC recommendation: HMRC should publish the concerns it has heard and the actions it is taking to address these, as a first step to improving trust. 2.6 The government agrees with the Committee’s recommendation. Recommendation implemented 2.7 HMRC publishes the results of its annual surveys as well as a range of other customer feedback (for example, via exercises like public consultation). The Exchequer Secretary has confirmed that HMRC will publish a Transformation Roadmap this summer, including the details of digital services that will mean a better experience for taxpayers.