A recent survey highlights a significant decline in trust towards HMRC among UK businesses. The erosion of trust is largely due to increasing inefficiencies within HMRC’s operations. Long wait times and inadequate advice are major sources of dissatisfaction. Complex post-Brexit processes add to the challenges faced by businesses. Some improvement efforts from HMRC are underway, but challenges remain.
A recent survey conducted by HMRC’s Administrative Burdens Advisory Board (ABAB) reveals a concerning decline in trust among UK businesses towards HMRC. For the first time, a majority of over 10,000 respondents rated their experience as ‘poor,’ marking a significant shift in sentiment.
Accountants and business advisers are cautioning about the adverse impact of inefficiencies within HMRC, which are hindering the tax collection process. Caroline Miskin of the Institute of Chartered Accountants in England and Wales (ICAEW) remarked, ‘This simply can’t be allowed to continue.’ Her statement echoes a widespread sentiment within the business community.
Long wait times for phone support were identified as a primary source of dissatisfaction. Additionally, the quality of webchat and helpline advice has been criticised for not meeting business needs effectively. These service issues are compounded by the complexities introduced by post-Brexit import and export requirements.
Despite HMRC’s efforts to streamline access to information on the .gov website, businesses continue to struggle with more intricate processes. Dame Teresa Graham, chair of ABAB, noted that many businesses now factor increased bureaucracy into the cost of operating in the UK.
In response to these challenges, HMRC has prioritised improving its helpline services and developing more user-friendly online resources. Graham urged the government to address the legislative burdens associated with taxation, cautioning against adding new taxes without considering existing frustrations. She highlighted that outdated IT systems and insufficient resources are significant barriers to necessary digital enhancements.
The survey’s findings, where 84% of respondents were businesses and the rest tax agents, clearly indicate that frustrations are growing concerning HMRC’s declining service standards.
The growing dissatisfaction with HMRC underscores an urgent need for comprehensive reforms to restore trust and improve service efficiency.
