HMRC customer support chaos: Taxpayers hounded for money they do not owe

The tax workplace is within the grip of a customer support meltdown — simply as shut to 5 million taxpayers have solely three weeks left to file their 2022-23 tax returns.

Chaos at HM Revenue & Customs has left taxpayers dealing with hour-long name wait occasions to get by means of, and lots of complain that their letters are going unanswered.

In excessive instances, individuals are ready as much as 9 months to obtain acknowledgement of their correspondence.

Dozens of Money Mail readers have voiced their frustration over year-long waits for tax refunds and being unable to get the solutions they want from the Revenue’s on-line chatbot, which taxpayers are being instructed to make use of as a substitute of calling the helpline.

Others complain that HMRC is working in an ‘unprofessional’ method and lots of workers look like working from house.

In one case, a reader tells of how a name was disrupted by a child crying within the background and the decision needed to be placed on maintain. 

Accountants and tax consultants who depend on HMRC to conduct enterprise inform us the division is ‘no longer fit for purpose’ and has been in severe decline for months.

Those looking for assist are discovering it troublesome to talk to anybody forward of the January 31 tax return deadline as a direct results of HMRC decreasing the service on its helpline on December 11.

Only 4 days’ discover of this was given, leaving thousands and thousands with restricted telephone help within the run-up to the self-assessment deadline.

The tax workplace now says it can take solely ‘priority calls’ — and can direct everybody else to its web site.

The timing couldn’t be worse — it’s the busiest month of the 12 months for submitting tax returns.

Last 12 months, taxpayers made 1.2 million calls to HMRC within the eight weeks main as much as the January 31 deadline, in line with official figures — on common 41,000 calls per day. 

Worse nonetheless, extra individuals shall be pressured to take action for the primary time this 12 months, because of a poisonous mixture of frozen tax thresholds and falling tax-free allowances.

This is inflicting confusion amongst those that face taxes they’ve by no means needed to pay earlier than — and who’re unable to get the help they want from HMRC.

HMRC’s choice to limit entry to its helpline has provoked anger amongst MPs and tax consultants, who warn it might result in errors on tax returns and other people dealing with fines.

The Revenue mentioned final week it expects greater than 12 million individuals to file a tax return for the 2022-2023 tax 12 months by January 31. But firstly of January, 5.7 million individuals had but to take action.

The majority of these with queries are being instructed to hunt assist from HMRC’s ‘digital assistance’ on-line chatbot. But consultants warn the programme is troublesome to make use of and presents solely a whole response when it’s given particular prompts written in ‘tax lingo’.

Robert Salter, of main tax agency Blick Rothenberg, says whilst an knowledgeable he discovered it tough to function when he needed to resort to utilizing it for private taxes.

‘The chatbot isn’t the magic reply that HMRC desires it to be,’ he says. ‘I didn’t discover it straightforward to make use of — it was awkward and irritating. 

If you had been IT savvy you could get higher solutions, however you shouldn’t must be. Even the place you do get a solution, all of the nuance of your private case is misplaced, so it’s only a partial reply.

‘HMRC has developed lots of technological solutions but in reality, they are not the solution, it is just a fudge that can slow the process down even more.’

When Money Mail tried to make use of the ‘self-assessment chat’ service on HMRC’s web site, it was obscure in its solutions. When we requested ‘How do I know if I need to pay tax on my savings?’, it responded with: ‘Is it your first time submitting a Self Assessment tax return?’. 

By clicking ‘yes’, we had been despatched a hyperlink to steerage on easy methods to submit your first Self Assessment tax return and directed to a YouTube video.

HMRC figures level to only half of consumers receiving a passable reply. It says that ‘in more than 50 pc of customer interactions with HMRC’s digital assistant, the assistant efficiently helps prospects discover the data they want’. If it might probably’t discover the reply, it connects the shopper to a webchat adviser.

Andy Gibbs, a chartered tax adviser at TaxHelp Accountants, says: ‘It’s irritating as a result of individuals simply need to pay their taxes. They don’t need to overpay and wait for his or her a reimbursement or underpay and face a nice.

‘There’s plenty of confusion on the market, particularly with a number of tax modifications all coming about directly, so it’s ridiculous that they will’t get by means of on the telephone.’

Eddie Grant, who heads up a workforce of tax consultants at St James’s Place, says most individuals need the reassurance of being instructed by an HMRC official that they’re doing their taxes accurately.

He says: ‘They’re more likely to be paying extra tax this 12 months however as a result of prices are excessive, they are going to be eager to not overpay. 

There are lots of people who’re extra comfy on the telephone and aren’t ready to make use of the digital chatbot.’ Older taxpayers say they really feel deserted by HMRC, as they’re uncomfortable with expertise.

‘These people are being left behind by HMRC,’ Mr Grant provides.

‘When you think about how banks are closing branches and face-to-face contact is declining rapidly, for HMRC now to also restrict the ability to speak to someone is just another area of contact that is disappearing.’

Richard Taylor, who’s 75 and retired, says he’s uncomfortable with the chatbot however his makes an attempt to contact HMRC by every other means — telephone, electronic mail or put up — have proved unsuccessful.

Richard was relieved when he thought his three-month nightmare making an attempt to rectify his incorrect tax code was over. He had been unable to get by means of to HMRC on the telephone when it closed its telephone traces between June and September final 12 months, and his emails and letters all went unanswered.

But when the retired lawyer finally acquired by means of when the telephone traces reopened and he obtained a refund for his overpaid tax, he realised his invoice was nonetheless inaccurate. He suspects his tax refund has been double counted — however the telephone traces are actually lowered as soon as once more and so he can’t discover out.

‘What a hopeless service,’ he says. ‘It is so frustrating that you can’t get by means of to them to rectify the errors they preserve making. It has by no means been this unhealthy earlier than.’

Peter Taylor, from Nottingham, says he was on maintain for an hour when he tried to name HMRC in December, and has beforehand waited 45 minutes to talk to somebody.

The 87-year-old filed his paper self-assessment tax return on May 15 for the 2022/23 tax 12 months, however didn’t obtained an acknowledgment of receipt or the tax refund he was due. Peter says he estimates that he overpaid £3,000 in tax, because of a big charitable donation he made after the dying of his spouse.

When Peter referred to as HMRC in September, he was instructed to jot down to the Self-Assessment centre to examine his return had been obtained. However, when he referred to as again in October he was given one other deal with to which to ship his letter.

Peter has now obtained affirmation that HMRC is coping with his declare. He provides: ‘I was told they are processing the returns in the order they were filed. Are they so far behind that my return still isn’t on the prime of the pile greater than seven months later?’

HMRC says that three-quarters of all calls made in December had been answered after a mean wait time of 25 minutes. However, Money Mail readers report maintain durations of greater than double that.

Roslyn Willis, a retired instructor, says she waited 58 minutes to talk to an HMRC officer at first of December.

‘It’s horrendous — it’s worse than it has ever been,’ she says.

Roslyn, who’s 72 and a widow, amends the way in which her tax is paid annually, preferring to pay one huge invoice out of her financial savings slightly than have tax deducted from her pension each month.

‘I always have to contact HMRC because they can’t appear to do it robotically, however this 12 months I discovered them particularly ineffective, rude and inept,’ she says. ‘They are unnecessarily putting people in an angst-ridden situation.

‘During one call, the customer service operator said he was working from home. He told me: “I’m upstairs, however will move you all the way down to my spouse who’s within the eating room and who works on tax codes.” It’s not what I might anticipate of a authorities division — it’s simply so casual.’

A Freedom of Information Request submitted by Money Mail discovered that between January and June 2023, 94.8 per cent of HMRC workers labored at house or in a non-office location for at the least sooner or later every week, and 84 per cent did so for at the least two days every week.

One reader tells us that after a 40-minute wait on maintain, he might hear an toddler crying within the background. ‘I was told that I would be put on hold as the HMRC representative had to gather further information,’ he says. ‘The call was placed on hold, and after a further ten minutes it automatically ended. How long does it take to change a nappy?’

An HMRC spokesman says that advisers reply the identical variety of calls whether or not they’re within the workplace or not and efficiency was actually higher on common the place workers work remotely.

He mentioned: ‘All our staff are held to the same standards whether they are working from an HMRC building or from home. Offering hybrid working is now essential for recruitment and retention in a competitive labour market.’ Mr Salter says that when you may get by means of on the telephone, frontline workers lack the coaching and experience they as soon as had.

‘The level of training has really declined and staff have less experience than they had before. You will call them up and they say the manual says X, but that doesn’t cope with your case or reply your explicit question.’

Victoria Fisher, from London, was instructed final month that she must wait till November 2024 to obtain a reissued cheque for her tax rebate.

The 50-year-old, who works in gross sales for a pharmaceutical firm, says she obtained a cheque for a tax rebate of £1,291.95 on October 4, however that her first and final names had been incorrectly transposed and the cheque made out to F Victoria — which meant her financial institution wouldn’t settle for it. She was instructed to request a brand new cheque with the right identify.

After a 50-minute wait on the telephone, an official at HMRC confirmed {that a} mistake had been made and they might notify the right division. Her cheque could be cancelled and a brand new one must be reissued inside eight weeks.

On December 11, she had nonetheless not obtained the brand new cheque and phoned once more. After additional calls, she was instructed the order had nonetheless not been processed and she or he would now have to attend for the reissued cheque till November 2024.

‘I was shocked. I thought they said the wrong date because I couldn’t consider it might take that lengthy. It is unacceptable,’ she says.

‘Due to the extreme cost of living right now, this rebate would be a huge help to me.

‘I was frustrated to get that news after waiting so long on the phone on multiple occasions. It’s actually troublesome to name them once you work, as a result of even in case you have an hour-long lunch break, it’s typically not lengthy sufficient for them to select up your name.’ 

HMRC says the error on the cheque was because of the unsuitable info being offered by Victoria’s employer and that she had been incorrectly instructed by HMRC’s worker that she would wish to attend so lengthy.

After reviewing her file, nevertheless, HMRC says Victoria’s taxes had been incorrectly calculated because of the error, and she or he is now not owed a refund on tax overpaid.

Andy Gibbs, chartered tax adviser at TaxHelp Accountants, says backlogs have been rising. ‘We have noticed a significant reduction in service and it is ridiculous that even when we can get through it takes a long time to sort things.

‘We are having to go the long way around, writing letters to get things resolved but it is taking months. In truth, we are almost at the point of giving up on certain lines of inquiry because we know it takes so long to receive any response.’

An HMRC spokesman says greater than 80 per cent of customers have been pleased with the net providers: ‘We want to help and encourage customers to resolve their issues as quickly and easily as possible. This is often through our online services, which save people having to wait on the phone or write to us.

‘This frees up our expert advisers to help people with urgent and more complicated queries, as well as helping the small number who are unable to access our online services.’

HMRC says it obtained three million calls on simply three points that may simply be resolved digitally — resetting an internet password, getting a tax code, and getting a National Insurance quantity. This required 500 individuals working full-time to reply these calls.

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