HM Revenue & Customs (HMRC) has never been known for its speed and efficiency, but recent reports show its service levels have hit rock bottom.

The latest Public Accounts Committee (PAC) findings reveal a worsening crisis, with businesses, accountants, and taxpayers alike facing ever-growing frustration when trying to get the answers they need.

The problem – Long waits, dead ends, and no accountability

The numbers speak for themselves. From April 2023 to April 2024, HMRC only managed to answer around two-thirds of customer calls, a record low.

Waiting times now average 23 minutes, with some unfortunate callers spending over an hour on hold, only to be cut off.

This is an unacceptable failure in a system that businesses and individuals rely on to meet their legal obligations.

Tax compliance should not feel like a battle against an organisation that seems increasingly unreachable.

A failing system

The PAC report outlines several alarming trends:

• Unanswered calls – A third of taxpayers who call HMRC never even get through.
• Excessive waiting times – An average wait of 23 minutes means many people lose valuable work hours trying to speak to someone.
• Increased reliance on outdated systems – Despite years of promises about digitisation, HMRC still processes millions of paper documents, leading to slow responses and lost paperwork.
• No clear transparency – The PAC has urged HMRC to reinstate a call waiting time target, but so far, little has changed.

The consequences of HMRC’s inefficiencies

This breakdown in service has wide-reaching consequences:

• Taxpayers struggling to get basic queries answered are left guessing, increasing the risk of mistakes and penalties.
• Businesses facing compliance deadlines cannot afford to waste hours chasing HMRC for simple clarifications.
• Accountants and tax professionals, who are supposed to act as a bridge between taxpayers and HMRC, are met with the same delays and inefficiencies, making their jobs harder.

A service in crisis

The Government claims HMRC is improving its digital services to reduce the burden on phone lines, but this does not solve the underlying issue: a tax authority that is failing in its most basic function of serving taxpayers.

Until HMRC addresses these systemic problems, expect more delays, more frustration, and a system that feels increasingly unfit for purpose.