As HM Revenue & Customs (HMRC) announces record-breaking tax revenues for the 2023/24 fiscal year, it’s evident that despite this financial success, the service levels provided to taxpayers, continue to suffer.

Last year, they collected a staggering £834.4 billion, up from £814 billion the previous year, and yet the tax authority’s performance in customer service is quite different – often to the frustration of those in the contracting sector.

Declining service levels at HMRC

Recent statistics highlight a significant drop in service quality, particularly evident in HMRC’s phone support.

With one in three phone calls going unanswered and average call wait times reaching 23 minutes – up dramatically from just five minutes in 2018/19 – the situation is deteriorating.

This decline is more than an inconvenience. It represents a critical barrier for contractors, and their agents like us, who require timely resolutions for their tax-related queries.

Digital solutions and future outlook

In response to these challenges, HMRC is enhancing its digital offerings, including the introduction of a Digital Assistant and webchat functions.

These initiatives are part of a broader effort to alleviate pressure on traditional communication channels and improve overall service efficiency.

Yet, the effectiveness of these measures in meeting the specific needs of taxpayers remains to be seen.

HMRC’s legal obligations

Under the HMRC Charter, the tax authority has a legal  obligation  to be responsive and efficient in its dealings with taxpayers.

However, the current situation and the acknowledgement of “serious challenges”, including financial pressures and an increasing number of complex taxpayer cases, suggest it is struggling to uphold these commitments.

Cogent Accountants is dedicated to supporting contractors in these complex times. By providing expert guidance and proactive solutions, we aim to mitigate the impacts of HMRC’s service-level challenges on your business. Remember, we are here to help you navigate through the bureaucracy efficiently and effectively.