Chartered Accountants
Business & Tax Advisers
Registered Auditors

Info Zone

You will find hundreds of pages of up-to-date information and advice to help with your business.

Oct 9, 2024

HMRC services face increased dissatisfaction

A recent survey conducted by the Administrative Burdens Advisory Board (ABAB) has revealed growing dissatisfaction with HMRC services, particularly in telephone helplines, webchat, and the overall quality of online guidance. The survey, which received a record 10,000 responses from businesses, sole traders, accountants, and tax agents, shows a decline in user satisfaction compared to previous years.

Decreased satisfaction with helplines and webchat services

One of the key concerns highlighted by respondents was the performance of HMRC’s telephone helplines. Nearly two-thirds (63%) of businesses and tax agents described wait times for helpline responses as “poor,” marking a significant increase from the 43% who expressed dissatisfaction in the previous year. Additionally, only 7.1% of respondents rated the response times as “good,” and a mere 1.9% found them “very good.”

Webchat services also received heavy criticism, with nearly 60% of respondents rating the service as “poor.” Only 105 respondents described the service as “excellent,” indicating a gap in the quality of HMRC’s customer support. Despite the negative feedback, the survey found that some respondents had not noticed a decline, with 54% stating that the service remained the same. However, the survey did not clarify whether they considered this positive or negative.

Website guidance continues to frustrate users

In addition to issues with customer support, many users expressed frustration with the usability and clarity of HMRC’s online guidance. While there has been a slight improvement in accessibility, with the percentage of users finding the website “difficult to access” dropping from 46% to 39%, nearly a quarter (24.8%) still rated it as “very difficult to access.”

Respondents noted that they often struggled to find the information they needed on the gov.uk website, frequently feeling like they were “going in circles.” Many called for clearer guidance written in plain English, free from complex jargon. As a result, many users said they preferred seeking advice from alternative sources such as accountants or paid advice lines rather than relying on HMRC’s official guidance.

Interestingly, while nearly half of the respondents rated the HMRC app poorly, it still maintains high reviews on popular app platforms. The app currently holds a rating of 4.8 out of 5 on Apple’s App Store and 4.4 out of 5 on Google Play, contrasting general user feedback and app reviews.

Concerns over Making Tax Digital

Making Tax Digital (MTD), HMRC’s flagship initiative to digitise tax submissions, also faced scrutiny. Many respondents expressed concern that MTD for income tax self-assessments (ITSA) would increase both the cost and time required to file tax returns. Specifically, two-thirds of respondents felt that MTD would lead to higher costs, while 65% believed it would lengthen the time needed to submit their returns due to the requirement for quarterly filings.

Despite these concerns, a small minority of respondents saw potential benefits, with 5.4% believing MTD would save them money and 7.3% expecting it to save time. However, nearly a third of respondents said they did not expect tangible benefits from the move to digital tax filing.

Impact of technology and artificial intelligence

The survey also touched on the broader theme of technological advancement, particularly the impact of artificial intelligence (AI) on business operations. While 25% of respondents said that introducing new technologies had increased their costs, more than a third reported improved efficiency as a result. However, one in five businesses noted having to invest in additional training to keep pace with technological changes.

In response to the survey findings, ABAB chair Dame Teresa Graham acknowledged the growing dissatisfaction and pledged to work with HMRC to address these concerns. She said:

“We will continue to work together with HMRC to highlight the messages from this survey, so that collectively we can develop a tax system that is easier, quicker, and simpler.”

Talk to us about your taxes.