A report released by the Public Accounts Committee (PAC) has further criticised HM Revenue & Custom’s (HMRC) phone service. It found that nearly 44,000 customers were cut off without warning after being put on hold for more than an hour in the first 11 months of last year.
Having criticised HMRC’s phone service last year, the committee said the service was worse again since it’s last report. It said HMRC had “damaged trust in the tax system” as a result.
The chair of the PAC, Geoffrey Clifton-Brown MP, has suggested that HMRC is degrading the service as a matter of policy.
HMRC has refuted this, with HMRC chief executive Jim Harra saying that the tax authority has made huge improvements to their service standards. He cited a cut in call waiting times of 17 minutes since April.
In the 2024 Autumn Budget, the Chancellor committed to investing £1.7 billion over the next five years to recruit an additional 5,000 HMRC compliance staff and 1,800 HMRC debt management staff. The report perhaps just confirms that this investment is needed by HMRC.
If you are frustrated by dealing with HMRC or would like help with any tax matter, please give us a call. We would be happy to help you!
See: https://www.bbc.co.uk/news/articles/cn4zjnd2llyo
HMRC have updated guidance on UK VAT refunds for non-UK businesses in a VAT group. Revenue & Customs Brief 10 (2026) explains changes to how non-UK businesses in a VAT group should make future UK VAT refund claims and the transitional arrangements. It also explains how to ask HMRC to reconsider claims made since 1 January 2021 that have been refused.
Mayors across England are to be given the power to charge a tourist tax on overnight stays which would apply to British and foreign visitors alike.