Jeremy Hunt has responded to public outcry over proposed plans to close HMRC’s helpline for six months each year.
HMRC has decided to close its busy tax helpline for half the year each year, amid a dramatic change in the way it responds to general questions about tax returns.Their helpline would have been closed from 8 p.m.th From April to 30thth It resurfaces only in September and during the busy winter season.
In addition to the summer closure of its tax helpline, HMRC has declared that the VAT helpline will only be open five days a month and that the PAY helpline will no longer accept calls for inquiries about unpaid refunds.
However, HMRC has welcomed the move as a “key element” of the move to an online self-service model, rather than a cost-cutting measure. HMRC’s deputy chief executive Angela McDonald said: “By changing our service so that customers self-serve online wherever possible, our helpline advisers can focus support where it’s needed most. “This will enable us to support people with complex tax questions and those who are vulnerable and in need.” Additional support.”
Following pressure from a number of MPs and stakeholders, Mr Hunt subsequently ordered HMRC to keep its phone lines open.
controversial changes
The move to abolish the helpline has drawn a group of critics. Dawn Register, head of tax dispute resolution at BDO, was skeptical about how beneficial the changes would be, predicting that they would instead “make tax compliance more difficult”.
Meanwhile, Chartered Institute of Taxation spokesperson Gary Ashford shared similar sentiments, calling the move “misguided”. He added that his group was “concerned that estimates and erroneous numbers could increase as we are unable to seek clarification from HMRC”.
It was certainly a bold move for HMRC to take so soon after its customer service came under fire in a public report. Parliament’s spending watchdog said HMRC’s customer service levels had fallen to a “record low” in less than a month. The report found that 62% of callers waited more than 10 minutes to speak to an advisor, an increase of 46% from 2021 to 2022.
The report found that it took an average of 16 minutes to answer a customer’s phone call, but a recent Guardian article reported even worse results. They said they had to wait for an hour and customers were cut off before they could get a call.
Ben Westby, senior client manager at Forbes Burton, expressed his concerns about HMRC’s proposed move, saying: “The whole thing seemed counterproductive.” He said: “Following recent reports slamming customer service helplines, you would never expect HMRC to further restrict phone lines.
“While I can understand the logic of doing this in the quieter months of the summer, it would certainly have only created a major bottleneck in October when the line finally opened. It has also obscured the message we have been trying to get across, that businesses should file their tax returns early.”
HMRC test pilot
It is unlikely that HMRC did not foresee that this change would be controversial, but they are clear about the direction they are heading. The Public Accounts Committee report explained how HMRC is scrapping phone lines and instead focusing on chatbots and how-to videos on YouTube.
However, a UK government press release suggested that “successful seasonal trials” had demonstrated that the new approach works. The report said: “The changes will enable HMRC to support more customers, with no impact on customers’ ability to file or pay on time, and by 31 January 2024, HMRC will be able to support 11.5 million more customers. “We achieved a record for filing a tax return.”
HMRC will have to bide its time before attempting something similar again, as the Chancellor’s intervention has scuppered plans to roll out this change permanently. While HMRC insists the closure between June 12 and September 4 last year was a success, ministers appear unconvinced that adequate safeguards are in place for a full transition to digital services. is.
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