HMRC has announced:
- The Self-Assessment helpline will be closed between April 8 – September 30 2024. Taxpayers will be directed to self-serve online. The helpline will be open between October and March to deal with priority queries, with other calls being directed to HMRC's online services.
- The VAT helpline will close permanently on April 8, save for the five business days leading up to and including each month’s submission deadline. Again, taxpayers will be directed to self-serve online.
- From April 8, the PAYE helpline will not deal with calls to chase PAYE refunds (unless the caller cannot go online or needs extra support). Once again, taxpayers will be directed to self-serve online.
The digital assistant and webchat will remain available, and Self-Assessment and VAT callers who cannot go online can speak to someone via the Online Services Helpdesk.
These are all permanent measures and so are expected to be repeated each year. There are no further changes to the Agent Dedicated Line at present.
Concerns
The move has come in for strong criticism from the Chartered Institute of Taxation (CIOT).
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“HMRC’s own evaluation of both the closure of the helpline in summer 2023, and the helpline restrictions during the 2024 Self-Assessment peak, concluded that it is too early to say if there has been a long-term shift from phone contact to online self-service. Yet HMRC have decided to go ahead anyway.
“While HMRC refer to the increasing numbers of Self-Assessment returns being filed, we are concerned that this doesn’t give the full picture. The recently published Self-Assessment filing statistics suggest that the negative impacts of last year’s measures may already be being felt. 90.48 per cent of Self-Assessment returns that HMRC expected to receive were filed by the January 31, 2024 deadline, as compared to pre-pandemic rates in 2020 of 91.82% - a fall of around 180,000 taxpayers. And of the returns submitted, we are concerned there may be an increase in how many will include estimates or errors because of the inability to seek clarification from HMRC.”
Reassurances needed
HMRC’s evaluation also demonstrated a firm desire on behalf of taxpayers and agents to deal with a real HMRC person. During the summer 2023 Self-Assessment helpline closure, 68 per cent of people who used the Self-Assessment digital assistant asked to speak to a webchat adviser, and stated preferences for phone contact approximately doubled.
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Recent customer research from HMRC identified that the need for reassurance is either very important (83 per cent) or somewhat important (15 per cent) when dealing with HMRC online.
CIOT's Gary Ashford said: "There’s no escaping the fact that tax is complicated, and people sometimes need reassurance that what they are doing is right. We would encourage people to try the HMRC app and online services, which do continue to be developed and so they may find their query can be resolved simply.
"However, HMRC's digital services are still far from fully functional, and the answers can still be difficult or impossible to find online. Unless and until automated digital services can be radically improved HMRC must be provided with the resources to provide all year round, well-publicised help and advice to taxpayers from a human adviser over phone and webchat.”
VAT compliance
The Association of Taxation Technicians (ATT) also raised concerns over the announcement regarding the VAT helpline, fearing that this could affect compliance.
Senga Prior from ATT said: "“Some of the decisions in the announcement are baffling, particularly the closure of the VAT helpline for all but the five days running up to the filing deadline each month.
"This is effectively encouraging taxpayers to leave their VAT tax compliance until the last minute, and flies in the face of HMRC’s previous work to promote early filing.
“Should HMRC go ahead with these measures, we urge them to monitor and publish information on the impact this has on the accuracy and timeliness of filing.”
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Susie Hughes © Shout99 2024
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