HMRC, just when you thought that things could not get any worse… since the pandemic (well since before then if we are being completely honest) the service that HMRC has been providing to taxpayers (or ‘customers’ as HMRC calls them) has been declining.
“A customer is an individual or business that chooses to purchase goods or services from one or other businesses.” So an unhappy customer can choose to shop elsewhere however, unfortunately ‘taxpayers’ do not have this option so they cannot be customers…
Declining to the extent that in 2023 the Public Accounts Committee (PAC) reported that HMRC’s customer service was “unacceptable”. One would hope that HMRC took notice at their report – they did… As this year (2024) the PAC has reported that HMRC’s customer service is now at an “all time low” – Yes, HMRC really listened and chose to completely ignore…
Recommendations in the PAC report are for HMRC to urgently address service quality, to ‘ensure HMRC’s customer services are sufficient to meet its own service standards until HMRC’s digital services meet the needs of taxpayers and their agents’.
HMRC have also been warned to stop taking aggressive action over trivial debts whilst being lenient on large debts. HMRC have been told that ‘recovery of its debts should be proportionate to the size of the debt.’
In the 2020/21 tax year, HMRC opened enquiries into 2.7% of R&D claims. In the 2022/23 tax year, HMRC opened enquiries into 20% of R&D claims. Sounds very proficient however, these enquiries are being handled by caseworkers who have had minimal training and no real knowledge of what R&D really is.
The PAC report was also critical of HMRC’s treatment of (IR35) contractors, who make mistakes due to the overly complex rules and HMRC’s tough approach when the contractors do make mistakes.
On the plus side (if you can call it that), HMRC’s holding music is one of the most streamed pieces of music in the country – one only hopes that HMRC have ‘rights’ to the music as the royalties they would be paying out would be horrendous.
In a nutshell – if the PAC report was a school report, then someone would be in for a ‘stern talking’ (I’m being polite, as other words spring to mind) however, this is HMRC so we can be confident that they will completely ignore the report and the advice it contains and continue on their merry way…
Scott Whitmore is Dafferns’ Senior Corporate Tax manager and is happy to assist should you have any concerns with your tax affairs.
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