HMRC’s performance statistics show significant improvement is needed
08 November 2022
HMRC has published its performance statistics for September 2022 and whilst their figures suggest an improvement in HMRC performance in some areas, in others, significant improvement is still needed.
In the six months to the end of September 2022, taxpayer correspondence was dealt with by HMRC within 15 working days of receipt in 69.9% of cases. This is a significant improvement compared with the same period to September 2021, when only 40 % of correspondence was dealt with in the same timeframe. Focussing on this statistic alone could lead you to conclude that HMRC is dealing with correspondence almost twice as efficiently as this time last year. However, it is easy to demonstrate improvement when the bar is not set particularly high to start with. There are other noteworthy metrics that suggest a distinct lack of improvement, and that poor service is being provided to taxpayers.
When the period for dealing with correspondence is extended from 15 to 40 working days (essentially 2 calendar months),14% of cases remain unanswered. It is therefore of little surprise that customer satisfaction has dropped compared with the same time last year. Overall customer satisfaction with HMRC’s phone, webchat, and digital services was 80.6% for the six months to September 2022. This compares with overall customer satisfaction of 83.1% for the six months to September 2021. There has been a clear downward trend in the level of customer satisfaction over the last 18 months, since a high of 84% in August 2021. The level of overall satisfaction remains relatively consistent each month, suggesting that in the last year and a half, almost one in five taxpayers have been dissatisfied with their experience of HMRC’s phone, webchat, and digital services.
The number of complaints that HMRC has received in the six months to September 2022 reflects this decreasing customer satisfaction. The number of tier 1 complaints (the first stage of a complaints process) was 42,687 between April 2022 and September 2022. This is higher than the same period last year when complaints were 41,636. Notably, in the six months to September 2022, HMRC agreed in full with the taxpayer’s complaint in 33.1% of cases. In a further 15.6% of cases, HMRC agreed with the complaint at least in part. In almost half of all cases, therefore, the taxpayer’s complaint was upheld.
HMRC has apologised that its telephony services and correspondence turnaround times have caused delays; blamed on IT issues and an extremely high volume of repayment claims currently being processed.
The above delays are indicative of our experience in claiming repayments of tax. In one case, a claim for a capital gains tax repayment of over £200,000 took almost a year for HMRC to process despite regular calls, and two complaints. At one point, before the complaints were escalated, we were provided with an estimated processing date of June 2023, for a repayment claim submitted in November 2021. This is not an isolated incident, with numerous other repayment claims taking months for HMRC to process.
The above examples are reflective of HMRC’s poor performance. The statistics show a lack of improvement in a number of key areas over the last 18 months, and that HMRC is not meeting the expectations of taxpayers.
In the six months to the end of September 2022, taxpayer correspondence was dealt with by HMRC within 15 working days of receipt in 69.9% of cases. This is a significant improvement compared with the same period to September 2021, when only 40 % of correspondence was dealt with in the same timeframe. Focussing on this statistic alone could lead you to conclude that HMRC is dealing with correspondence almost twice as efficiently as this time last year. However, it is easy to demonstrate improvement when the bar is not set particularly high to start with. There are other noteworthy metrics that suggest a distinct lack of improvement, and that poor service is being provided to taxpayers.
When the period for dealing with correspondence is extended from 15 to 40 working days (essentially 2 calendar months),14% of cases remain unanswered. It is therefore of little surprise that customer satisfaction has dropped compared with the same time last year. Overall customer satisfaction with HMRC’s phone, webchat, and digital services was 80.6% for the six months to September 2022. This compares with overall customer satisfaction of 83.1% for the six months to September 2021. There has been a clear downward trend in the level of customer satisfaction over the last 18 months, since a high of 84% in August 2021. The level of overall satisfaction remains relatively consistent each month, suggesting that in the last year and a half, almost one in five taxpayers have been dissatisfied with their experience of HMRC’s phone, webchat, and digital services.
The number of complaints that HMRC has received in the six months to September 2022 reflects this decreasing customer satisfaction. The number of tier 1 complaints (the first stage of a complaints process) was 42,687 between April 2022 and September 2022. This is higher than the same period last year when complaints were 41,636. Notably, in the six months to September 2022, HMRC agreed in full with the taxpayer’s complaint in 33.1% of cases. In a further 15.6% of cases, HMRC agreed with the complaint at least in part. In almost half of all cases, therefore, the taxpayer’s complaint was upheld.
HMRC has apologised that its telephony services and correspondence turnaround times have caused delays; blamed on IT issues and an extremely high volume of repayment claims currently being processed.
The above delays are indicative of our experience in claiming repayments of tax. In one case, a claim for a capital gains tax repayment of over £200,000 took almost a year for HMRC to process despite regular calls, and two complaints. At one point, before the complaints were escalated, we were provided with an estimated processing date of June 2023, for a repayment claim submitted in November 2021. This is not an isolated incident, with numerous other repayment claims taking months for HMRC to process.
The above examples are reflective of HMRC’s poor performance. The statistics show a lack of improvement in a number of key areas over the last 18 months, and that HMRC is not meeting the expectations of taxpayers.
Matt Brown
Associate Director, Private Client Services
AUTHOR
Matt Brown
Associate Director, Private Client Services
