HM Revenue & Customs’ current response levels are frustrating both tax and mainstream advisers, with some saying it is hard to get any sort of response from the government department at all.
The president of the Chartered Institute of Taxation, Susan Ball, said at FTAdviser’s Financial Advice Forum last month (September 22) that HMRC's responsiveness was “the worst it’s ever been”.
An adviser in the audience had said he was despairing - and had been for months - over how he could get HMRC to reply to him on behalf of one of his clients. He had sent them requests for the cost of buying extra years or top ups for state pension in National Insurance contributions.
So far, he said, he has had no reply at all.
Ball told him to "get the fax machine out”. The tax body’s president said this method, one she herself uses as a tax adviser, requires HMRC to acknowledge receipt of any inbound inquiries, unlike an email.
We’re recruiting more staff to improve areas under pressure.HMRCBall said she, as well as the wider tax industry she oversees, have found response levels to be worse than during the pandemic.
As of today (October 11), the processing of R40’s - claims for a refund of Income Tax deducted from savings and investments - is delayed. HMRC is dealing with claims received on August 30, and VAT group applications are even further behind, dealing with applications received as far back as May 15.
A HMRC spokesperson said the department had made “good progress” in recovering its services since the pandemic.
HMRC said it did reduce its post queues “by 1.5mn items” last year. The department also said it expects these improvements to continue, but that it’s sorry customers have experienced delays with some of its services.
The department added: “Customer satisfaction is at 80 per cent and we’re recruiting more staff to improve areas under pressure.”
FTAdviser understands that during the spring, HMRC tested a new performance dashboard so agents can check on the progress of their claims or requests and keep their clients updated.
The department’s own aim is to answer calls via its helpline after an average of ten minutes.
Ball said despite not answering inbound enquiries in her experience, HMRC is conducting its own outbound inquiries to wealthy individuals - many of whom will have financial advisers - in the lead up to the next tax return season.
“The top population of ‘wealthy’ - so that’s £200,000 plus - they’ve picked 1,000 people and invited them for a chat,” Ball explained.
“The idea being that they may be wanting to talk about what they want to file on their tax return.
“As a tax adviser, I would be slightly concerned if one of my clients did that without having a chat with me first.”
She also said clients do not have to talk to HMRC if they do not want to.
“We are expecting to see more activity from HMRC over the coming period,” said Ball, which she put down to a tax gap the department now has to fill in an era of historic tax cuts.
ruby.hinchliffe@ft.com
