UK businesses voice diminishing trust in HMRC due to declining service levels, necessitating urgent reform.
- A survey of over 10,000 businesses reveals the majority rating of HMRC experience as poor, highlighting inefficiencies.
- Long wait times for phone support and dissatisfaction with webchat and helpline advice are major concerns.
- Post-Brexit complexities in tax processes contribute to increased frustration among businesses.
- Calls for the government to address legislative burdens and outdated IT systems are growing louder.
In recent times, UK businesses have increasingly expressed declining trust in Her Majesty’s Revenue and Customs (HMRC) as service standards have fallen. This sentiment was captured in a survey conducted by HMRC’s Administrative Burdens Advisory Board (ABAB), with over 10,000 respondents participating. The survey found, for the first time, a majority rating their experience with HMRC as “poor.”
The decline in trust is largely attributed to inefficiencies within HMRC that are hampering tax collection processes. These inefficiencies are causing significant concern among accountants and business advisers. Caroline Miskin, a senior technical manager at the Institute of Chartered Accountants in England and Wales (ICAEW), voiced the urgency of the problem, stating, ‘This simply can’t be allowed to continue.’
Among the various service issues, the most significant rise in dissatisfaction stems from long wait times for phone support. Additionally, businesses are frustrated with the quality of advice received through webchat and helpline services. While HMRC has made some improvements in making answers more accessible on their .gov website, businesses are often challenged by more complex processes, particularly those related to post-Brexit import and export documentation.
Dame Teresa Graham, chair of ABAB, noted that many businesses have come to view the increased bureaucracy as an inherent cost of doing business in the UK. She emphasized that both the Treasury and HMRC are cognizant of these issues and are prioritizing improvements in helpline services and online resources. Graham also urged government officials to address the legislative burden related to taxation, cautioning against simply implementing new taxes in upcoming budgets.
The technical challenges faced by HMRC, such as outdated IT systems and limited resources, are significant barriers to the necessary improvements in their digital offerings. These issues further compound the difficulties businesses face when interacting with HMRC. The survey noted that approximately 84% of respondents were businesses, with the remainder being tax agents, both of which expressed mounting frustration with HMRC’s declining service standards.
Urgent reforms are imperative to restore trust in HMRC and improve service standards.
