HMRC updates

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HMRC updates

Cash injection for HMRC at last

13 May 2024
aat comment

The Treasury has announced £51m in additional funding for HMRC to support its performance and phone services, after years of declining resources and services.

AAT and other organisations have been calling for the government to provide HMRC with more resources for some time. We are pleased to see this call answered at last, with the Treasury announcing £51m in additional funding for the Revenue.

This move follows HMRC’s 24-hour U-turn on plans to close its Self Assessment, PAYE and VAT support phone lines over the summer months, following public outcry in March.

Calls answered

Financial Secretary to the Treasury Nigel Huddleston says he is “fully committed to providing HMRC with the resources it needs to meet the needs of all its customers”.

HMRC’s Chief Executive and First Permanent Secretary Jim Harra said “We remain committed to expanding our online services and encouraging customers to go online where they can, as we strive to deliver good services as cost-effectively as possible. But we recognise this must happen at a pace the public is comfortable with.

“This additional funding will enable us to improve our helpline service for those who need to speak to us – including the vulnerable and digitally excluded – making sure they get the support they require.”

In other words, HMRC will continue to transition customers on to digital services. But that’s with the assurance, as Huddleston put it, that “there will be someone at the end of the phone, ready to speak.”

Whilst AAT is pleased to see this additional investment in improving HMRC’s telephone services, we maintain that there still needs to be new, significant, long-term funding to enable HMRC to fundamentally transform its customer service offering and improve the taxpayer experience.

Letter to HMRC

Previous calls for more funding culminated in a joint letter sent to the Chancellor ahead of the Spring Statement in 2023, in which AAT and nine other UK professional bodies urged the Chancellor to prioritise investment in HMRC’s service levels.  

The letter argued HMRC’s customer service levels had fallen to an unacceptably low level which had ‘significant ramifications for taxpayers, business owners and their agents who are trying to comply with their tax obligations but need to be able to interact with the tax authority in a timely and efficient way.’  

The bodies went on to state that by focusing on improving its customer service and effectiveness, HMRC would ‘help both improve public sector finances and boost productivity in the UK as a whole.’  

“AAT members have been vocal, both in terms of the impact on themselves and on the thousands of clients and small businesses they serve, in identifying that HMRC has been struggling to meet satisfactory service levels,” said AAT’s Interim Director of Policy, Adam Harper.

A timeline of AAT’s calls for investment in troubled HMRC

  • Autumn 2022: New Time for change policy report shows cross-party support for a fairer, more effective tax system. AAT calls for HMRC to fix gaping flaws in current system.  
  • January 2023: AAT warns that half-measures won’t solve customer protection issues coming from HMRC consultation.
  • March 2023: AAT and nine other UK professional bodies write letter urging the Chancellor to prioritise investment in HMRC’s service levels.
  • April 2023: AAT calls out government for missed opportunity to regulate tax advice standards ahead of Tax Administration and Maintenance Day.
  • May 2023: AAT provides evidence to the Public Accounts Committee inquiry into progress with Making Tax Digital.
  • June 2023: AAT responds to the HMRC consultation on simplifying and modernising HMRC’s Income Tax services through the tax administration framework.
  • July 2023 AAT urges HMRC be given more funding to solve poor performance, customer service 
  • October 2023: AAT provides evidence to the Public Accounts Committee inquiry into HMRC Standard report 2022-23.
  • January 2024: AAT submits a representation to HM Treasury ahead of the Spring Budget 2024.
  • March 2024: Government announces consultation on introduction of mandatory professional membership and supervision, which AAT welcomes.
  • March 2024: AAT comments on the HMRC helpline U-turn.
  • April 2024: AAT welcomes Labour’s promise of investment into HMRC.

AAT Comment offers news and opinion on the world of business and finance from the Association of Accounting Technicians.

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