- HMRC restricts helpline access
- MPs and experts express discontent
- Concerns over tax system confidence
From Monday to January 31, HM Revenue and Customs will ban most Self Assessment hotline calls. Thus, taxpayers will not be able to get phone support in the final days before the return deadline.
The tax office will only answer “priority calls” and direct all other inquiries to its website.
Members of Parliament (MPs) and tax experts have expressed discontent with the announcement, cautioning that it may inadvertently cause taxpayers to commit errors on their tax returns, resulting in subsequent penalties.
The period preceding the January 31 tax return deadline is among the most hectic for the tax office. Approximately 5.5 million taxpayers call the helpline annually during this time.
Short Notice Raises Concerns
This year is expected to be busy due to suspended allowances pushing hundreds of thousands into higher tax categories.
Nonetheless, HMRC has provided taxpayers with only two business days’ notice prior to the phone service being reduced.
Concerns Raised by Treasury Committee
Harriet Baldwin, chair of the Treasury Committee, stated that the cross-party group of MPs has repeatedly conveyed to HMRC its concern regarding the administration of the Self-Assessment Helpline. A comparable three-month closure was implemented by HMRC during the summer.
“Meaning the deadline for Self Assessment returns while giving the public less than two working days’ notice of a significant reduction in service is yet another alarming development for an increasingly overburdened government service,” she said.
Approximately two-thirds of inquiries to the Self-Assessment helpline, according to HMRC, can be resolved considerably faster via its online services.
The company said it would notify callers about its complete online services via text and recorded messaging.
Priority will be given to addressing inquiries that are not amenable to online resolution. Additionally, attention will be directed to customers who require additional assistance or are unable to utilize the organization’s online services.
Concerns Over HMRC Service Changes
Jim Harra, chief executive officer of HMRC, stated in a letter to the Treasury Select Committee that the department must reduce the volume of phone and postal contact by at least 30 percent by 2025 compared to 2021/22 “in order to maintain our service standards with the resources at our disposal.”
The director of tax dispute resolution at the accounting firm BDO, Dawn Register, described HMRC’s short notice of the closure as “extremely unhelpful.”
“Taxes can be complicated, and I am concerned that individuals who are directed online may land on the incorrect page and obtain an inaccurate response to their inquiry,” she further stated.
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“Simply conscientious members of the public attempting to pay the correct bill call the helpline.”
The head of The Low Incomes Tax Reform Group, Victoria Todd, expressed concern. She noted that certain HMRC online services have not yet reached the level of functionality required to assist taxpayers effectively.
She further stated, “Forcing taxpayers to use substandard services jeopardizes confidence in the tax system, which could result in errors, noncompliance, and additional issues for taxpayers and HMRC in the future.”