HMRC has announced that it will pilot a new “seasonal model” of the self-assessment helpline in an effort to relieve pressure on phone lines and prioritize urgent inquiries.
The initiative, which is set to run for three months from 12 June 2023, will pilot self-assessment inquiries from the helpline into HMRC’s digital services, which include online orientation, digital assistant and online chat.
The vast majority of self-assessment clients use HMRC’s online services, the IRS said, with 97% filing online.
HMRC has come under great pressure to improve service levels in recent months, having slashed its customer service work force from 25,500 to 19,500 in the past five years due to its push towards digitization.
But the new initiative, according to the Revenue Service, will provide 350 counselors to answer about 6,600 “urgent” self-assessment calls per day.
“The seasonal helpline will provide more of our expert advisors as they are needed most during the summer months,” said Angela MacDonald, Executive Vice President and Second Permanent Secretary at HMRC.
“Our online services, including the HMRC app, are fast, easy to use and greatly improved. I urge clients to explore them fully before they decide to wait to speak to us on the phone.”
But according to Seb Maley, CEO of IR35 advisory firm Qdos, the timing of the new pilot scheme is ill-timed and merely “highlights the mess” in the tax office.
“We are in a cost of living crisis, and the self-employed are experiencing tax increase after tax increase and instead of increasing the support available, HMRC is reducing it.
“HMRC can dress it up however it likes, but shutting down the phone lines for self-employed taxpayers will only lead to problems.”
Malley also argues that the move contradicts HMRC’s pleas earlier this year for the self-employed to submit and pay their tax bills, calling the plans “nonsensical”.
In a similarly critical fashion, Chris Etherington, private client tax partner at RSM UK, argues that the summer trial scheme could heap undue pressure on phone lines when they reopen in September.
According to HMRC, the self-assessment helpline receives significantly fewer calls during the summer, with almost 50% more calls between January and April compared to June to August.
But Etherington says the summer shutdown is likely to add to already long waiting times at the beginning and end of the year and cause some taxpayers to face a “bleak winter”.
“The shutdown could come as an unwelcome shock to many taxpayers and could be a shortsighted move. HMRC is already struggling to deal with the level of phone calls that come in the winter before the January 31st deadline, and this could make the problem worse.”
Taking a more optimistic stance, ACCA UK’s Head of Technical Engagement and Strategy Glenn Collins said he was “delighted that HMRC is looking at all options to address the current poor performance”, praising the tax office for being “flexible and adaptable”.
However, he continued to echo Etherington’s views, citing “tension” between HMRC urging taxpayers to file early while shutting down one of the key mechanisms for this.
“It’s a very good idea to choose the lowest point of demand to force people into a platform that many are not comfortable with, but not if you are going to try to increase demand by encouraging early registration at the same time.
“HMRC will not be able to effectively measure the change in behaviour, as the alternative has been removed. What HMRC should focus on is the proportion of inquiries that are normalized in a single interaction, this is not currently good enough and the fear is that this could get worse.”
