According to recent reports using data retrieved under the freedom of information act, last year saw a dramatic rise in complaints to the tax office as customer service hits record lows.
Complaints to HM Revenue and Customs (HMRC) about prolonged waiting times surged by 65 per cent, reaching almost 34,000 in the 2022-23 period.
This marks an increase from 20,501 complaints the year before. Taxpayers who escalated their complaints about HMRC delays typically received £371 in compensation.
Despite the high volume of complaints, only 4,742 resulted in compensation payments, according to official statistics.
On average, taxpayers who raised concerns about delays received £136 in compensation from HMRC, while those who escalated their complaints were awarded £371.
The figures reveal that HMRC paid £718,000 in compensation to taxpayers in 2022/23, a significant rise of 94 per cent from the £371,000 paid out in 2021/22.
Graham Boar, partner at UHY Hacker Young Chartered Accountants, says: “HMRC’s customer service crisis is the worst it’s ever been. The poor quality of service is incredibly damaging for individuals and small business.”
“It takes a very long time to get through to anyone – and if you’re lucky enough to reach someone they’re rarely the relevant expert. HMRC is severely under-resourced and needs more funding to deliver the service customers deserve. Complaints are mounting.”
“The new Government needs to properly invest in HMRC and its customer service functions and not just in its tax investigation side.”
HMRC is struggling to cope often due to underfunding and staff shortages. In May the government recognised this and announced an extra £51 million in new funding to help improve their phoneline service.
Child benefit late payment compensation
An error in HMRC’s system resulted in approximately 500,000 families not receiving their anticipated Child Benefit payments of £102 or £168 on June 3 2024.
Financial guru Martin Lewis has advised families affected by the missing Child Benefit payments to reach out to HMRC for compensation.
HMRC has established a compensation scheme for individuals who have experienced a “direct financial loss” due to delayed payments.
You should document any expenses incurred and then file a complaint using the online complaints form available on the Government’s website.
HMRC added via its Customer Support account: “We are very sorry some customers didn’t receive their scheduled Child Benefit payments as expected and we understand the concern and difficulty this may have caused. We’ve fixed the problem and affected customers will now receive their payments on Wednesday morning (5th June).”
