Is HMRC Fit For Purpose

Over the last year it has become apparent to many accountants that the quality of the service provided by HMRC has been declining significantly.

The decline in the quality of servoice would appear to be directly releated to a reduction in the level of funding provided by the UK government.

In 2023 there was a reduction of approx. 5% in the number of employees of HMRC.

In January 2024 HMRC announced that it was going to prevent Agents from using the dedicated Agent’s helpline for queries relating to self-assessment PAYE  and for progress updates on repayment claims.

This follows on from a statement made by HMRC in 2023 in which HMRC planned to reduce resources on their helplines by approx 30% in 2024. HMRC are expecting taxpayers and agents to be able to use digital access to their systems in order to resolve queries and to obtain information.

In early February 2024 it was announced that HMRC’s funding would be further reduced by £1bn from the current level of just under £6bn.

All of the above points would seem to indicate that HMRC is approaching the position where it is unable to function in its role as the collector of taxes within the UK.