Source · Select Committees · Public Accounts Committee
Recommendation 9
9
Rejected
HMRC faces resource shortages as taxpayer numbers and complexity continue to increase.
Conclusion
HMRC says it has not had enough resources to deal with all the contact it has been receiving.17 It estimates that in the last two years, the number of taxpayers in the income tax system has increased by 3 million as a result of the freezing of income tax thresholds. HMRC also explained that more taxpayers are in more complex parts of the tax system, such as paying capital gains tax or higher rates of income tax.18
Government Response Summary
The government disagrees with the conclusion that HMRC has been too willing to let its telephone services fail and states that improving customer services is one of the Exchequer Secretary to the Treasury's priorities. It says it will publish a Transformation Roadmap in 2025.
Government Response
Rejected
HM Government
Rejected
The government does not agree with the Committee's conclusion that HMRC has been too willing to let its telephone services fail in the hope this forces people to use its digital services instead. The Exchequer Secretary to the Treasury has made clear that improving customer services is one of his three priorities for the department. 3.3 HMRC continuously collects and analyses customer data and insight to optimise its decision-making process. This evidence-based approach helps determine where digital solutions can reduce overall demand and help the department to ensure it can provide telephony support to those who need it, and will inform HMRC’s Transformation Roadmap to be published in 2025. 3.4 HMRC's digital-first strategy aims to improve customer service by offering convenient digital self-service options for customers, including small businesses and their agents. Use of HMRC’s app and other online services continues to grow, with these consistently receiving high customer satisfaction ratings. While encouraging the use of digital services, HMRC knows that some taxpayers may need alternative support. HMRC will continue to provide support through other channels, such as telephone and face-to-face appointments, for those who need it. 3.5 HMRC has made recent improvements across all its channels and for all types of customers. It has made significant progress in telephony and correspondence service performance during 2024-25. Funding provided by the government for 2025-26 will enable HMRC to maintain service standards on telephony and correspondence.