The Cosmic Watchdog

The HMRC is under fire after a report revealed that nearly 44,000 callers were cut off last year while waiting over an hour to speak with an adviser.

The revelation comes just days before the self-assessment tax deadline on January 31, raising concerns about the authority’s ability to cope with the surge in demand.

A report by the Public Accounts Committee (PAC) found that HMRC‘s customer service had worsened significantly, accusing the tax authority of “damaging trust in the tax system.”

The committee highlighted that the number of callers cut off during the 2023-24 financial year was six times higher than the previous year, as HMRC‘s systems failed to handle the call volumes.

The PAC report revealed that in the first 11 months of the current financial year, 43,690 customers were disconnected after waiting an average of 70 minutes.

Customers were not informed that their calls would be terminated nor offered callbacks.

Claire, one affected customer, shared her experience with the BBC, saying she was repeatedly cut off and had to resort to sending letters, two of which were “lost” by HMRC.

“It was very, very difficult,” she said. “If you’re elderly like my parents, you’d be stuffed.”

Jim Harra, HMRC‘s chief executive, dismissed claims that the poor phone service deliberately pushed customers online.

He defended the authority’s efforts, stating that average call wait times had decreased by 17 minutes since April 2023 and that 80% of customers were satisfied with its digital services.

However, Sir Geoffrey Clifton-Brown MP, chair of the PAC, criticized HMRC‘s performance, stating it was “excavating its way to new lows” and accused the authority of degrading its phone services as a policy.

The committee’s report also criticized HMRC‘s handling of tax debts and offshore tax gaps. It revealed that £5 billion in debts were written off as uncollectable in 2023-24, up from £3.2 billion the previous year.

Additionally, there were concerns about declining rates of criminal investigations and prosecutions for tax-related offences.

The PAC called for “bold and ambitious leadership” to address these issues and improve customer services.

The upcoming self-assessment tax deadline could place an even greater strain on HMRC’s services. Sir Geoffrey noted that HMRC was lagging behind other government departments, such as the Passport Office, in providing reliable digital services, which forces many customers to rely on phone lines.

The report also referenced a controversial decision last year to close phone lines between April and September, a move that was reversed within 24 hours following public backlash.

Despite the criticisms, Mr Harra said: “We will always be there to answer the phone for those who need extra help. At the same time, more and more people are using our digital services to quickly and easily manage their tax affairs.”