HMRC sacked 179 staff for serious misconduct in 2024, the highest number in at least five years, according to data obtained through a Freedom of Information request.
This represents a 43% increase compared to 2020 when 125 employees were dismissed for similar reasons, accounting for just 28% of all dismissals at that time.
The latest dismissals, which now account for more than half of the 321 dismissals at HMRC this year, reflect a tougher stance on disciplinary matters within the department, which employs more than 65,000 staff. Serious misconduct includes serious breaches of conduct, such as bullying, theft, poisoning, damaging company property, gross negligence or other actions that could harm the organisation. For HMRC, this could include unlawful disclosure of sensitive taxpayer information or fraudulent use of government systems.
In one high-profile case, a tax office worker was jailed for more than two years after defrauding taxpayers of £300,000 in child benefits by falsely claiming three of her children were disabled and falsifying tax credit claims for 15 other children, using details accessed through her work computer system.
Civil servants can also face dismissal for unauthorised access to government databases. For example, Louise Kelly, who worked for 20 years in the Department for Work and Pensions, was dismissed after she improperly searched her neighbour’s address on Searchlight, a database containing sensitive financial and health information. Her dismissal was upheld by an employment tribunal, underscoring the importance of strong policies to prevent the misuse of such systems.
The Department for Work and Pensions also reported 190 dismissals for serious misconduct in 2023-24, accounting for around 40% of all dismissals, down from 221 the previous year.
Steve Sweetlove of accountancy firm RSM pointed out that while the increase in dismissals for gross misconduct at HMRC may seem alarming, it could also signal a tougher approach to maintaining standards of conduct. He said: “Given the vital role HMRC staff play in handling taxpayer data and collecting revenue for the government, cases of gross negligence can be a very serious matter, so it is important that appropriate action is taken where necessary.”
Michael Newman, an employment law specialist at Legg Day, added that gross misconduct was limited to the most serious breaches and remained relatively rare. He stressed that what constitutes gross misconduct can vary depending on the role of the employee, with fraud at HMRC being particularly serious.
The increase in dismissals comes as HMRC faces significant operational challenges, with customer service at what has been described as an “all-time low”. The department was able to answer just 66% of customer calls last year, well below its target of 85% and down from 71% in 2022-23. Increased demand for HMRC services, driven by frozen tax thresholds that attract more taxpayers to higher rates, has exacerbated these issues.
Earlier this year, the Public Accounts Committee criticised HMRC’s service levels as the worst ever, following an “unprecedented” number of complaints about the tax office’s performance. In addition, levels of bullying and harassment at HMRC were reported at 8%, while staff engagement was at 56%, the lowest in the civil service compared with a benchmark of 64%.
A government spokesperson acknowledged the challenges but stressed that all large organisations occasionally face issues around staff behaviour. “We take all allegations seriously to ensure we operate in an inclusive, friendly, tolerant and respectful environment,” the spokesperson said. “All our staff must ensure they follow our Code of Conduct alongside the Civil Service Act, with breaches being investigated and investigated where necessary, which may result in dismissal.”
With HMRC set to receive additional recruitment funding, the need for strong oversight and support for new recruits will be crucial to maintaining standards and improving overall performance.
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