Customer service

[On developing realistic plans:] a HMRC should reassess what levels of customer service performance are needed to achieve value for money by balancing costs to HMRC and customers with the value of contact. For example, contact that helps customers get their tax or benefits right, make repayments, or other types where customers are likely to chase progress. HMRC should agree sufficient funding with HM Treasury to achieve those target levels or be clear on the level of performance it can achieve if funding is not sufficient. It might be appropriate to target faster processing of customer queries, while reducing targets for some low value calls or those with digital alternatives. HMRC needs to clearly communicate the level of performance customers can expect, as well as significant deviations in performance levels, to those attempting to use the service.

Ref Page 14, a · Implemented Q1, 2025-26

[On protecting tax revenue:] j. HMRC should look at cases of taxpayers failing to take reasonable care, to understand the main reasons and identify whether there are changes it can make to its services and systems to reduce occurrences

Ref Page 17, j · Implemented Q4, 2026-27

k. HMRC should develop a better measure of the financial consequence of procedural errors in the handling of calls and processing of claims, and use this to bear down on customer service errors affecting tax revenue. HMRC does not have the data to report the financial accuracy rate for only those types of queries that could be financially inaccurate and should develop this to avoid underestimating the scale of errors.

Ref Page 17, k · Implemented Q4, 2024-25

b. For future spending reviews, HMRC should only plan to realise staff reductions from changes to its digital services once improvements have taken effect and the benefits can be estimated with confidence.

Ref Page 14, b · Implemented Q2, 2025-26

[On developing a more customer-orientated approach;} c. HMRC should ensure it understands how new digital services will support the shift from telephone and correspondence, and manage increasingly complex queries. When developing and introducing new digital services, HMRC should be clear on what demand or services it is seeking to replace. HMRC needs to develop not only new digital services but also its existing digital services, particularly where performance or customer satisfaction is low

Ref Page 15, c · Implemented Q2 2025-26

d. HMRC should invest in raising awareness of its digital services. It should be clear with customers about what services are available and what tasks and queries customers can and cannot do digitally.

Ref Page 15, d · Implemented Q4, 2024-25

e. HMRC should develop a plan for how it will support customers to use and keep using digital services. Deflection methods may be justified where queries can be fully handled digitally, but HMRC must also be more proactive in helping callers to find the right routes and offering support as customers familiarise themselves with digital services. Some customers will not be comfortable using digital services and others will have queries whose nature or complexity means they cannot be dealt with through a self-serve channel. HMRC must provide adequate alternative services for these customers, and it must be clear how they can access them.

Ref Page 15, e · Implemented Q2 2025-26

[On achieving savings;] f HMRC should reduce avoidable, unnecessary and expensive forms of contact. In particular, HMRC should: ? set a target to reduce the volume of failure demand affecting telephone and correspondence each year. It should measure separately failure demand which is due to HMRC and which is due to customers, and develop a plan to reduce each element; ? accelerate its work to reassure customers through all its channels and improve the functionality to track progress digitally; ? identify and tackle the causes of misdirected telephone calls and correspondence; and ? increase opportunities for customers to send correspondence and documentation through secure electronic networks, including HMRC portals, which are cheaper, or faster than postal correspondence for customers to use and easier for HMRC to track and administer.

Ref Page 15, f · Implemented Q3 2027-28

g. HMRC should develop a better understanding of the costs and benefits of its services. This will enable HMRC to better prioritise and plan the services it replaces with digital services. As part of this HMRC should: ? develop accurate data to compare the costs of resolving queries in different channels and use this to prioritise digital improvements; ? improve its understanding of the types of calls and correspondence, and the process failures, that are most costly to HMRC and its customers, and use this to reduce the cost of failure demand; ? improve its understanding of why average call-handling times have increased so much and seek to improve call-handling efficiency; ? consider whether it is proportionate for the government to pay interest on VAT repayments that are submitted and processed on time; and ? accelerate its work to develop the systems and functionality to track customers across different channels and better understand the impact of digital services on the use and costs of telephone and correspondence services.

Ref Page 16, g · Implemented Q4 2025-26

[On introducing digital services:] h HMRC should identify and apply learning from the implementation of its digital projects, including using experienced practitioners to lead projects and designing services to handle complex customer journeys and needs from the outset. This approach should help HMRC support most customers initially and reduce design iterations.

Ref Page 18, h · Implemented Q2 2025-26

i. HMRC should ensure a more consistent approach to introducing major service changes, particularly those to stop or reduce existing services. This approach should include: ? early engagement with stakeholders on potential service changes to anticipate the potential impact on customers and stakeholders; ? communication of service changes to customers in good time so they can prepare; ? robust impact assessments on the plans, including considering how changes will affect a diverse range of customers; and ? testing and evaluation that is proportionate to the scale of the service change, including understanding customer experiences and obtaining views from customers and key stakeholders

Ref Page 18, i · Implemented Q4 2025-26