UK businesses are experiencing a decline in trust towards HMRC, largely due to decreased service standards and inefficiencies. These issues have been highlighted by recent surveys, which reveal growing dissatisfaction among businesses that rely on HMRC for tax-related services.
Survey Highlights Growing Dissatisfaction
A recent survey conducted by the Administrative Burdens Advisory Board (ABAB) has shed light on the growing dissatisfaction among UK businesses concerning the performance of HMRC. For the first time, a majority of over 10,000 respondents rated their experience with the tax authority as
Long Wait Times and Poor Quality of Support
Many businesses have expressed frustration over prolonged wait times for phone support, which is a significant factor contributing to the erosion of trust in HMRC. In addition to delays, the quality of webchat and helpline advice has also been criticised, further exacerbating the situation.
Despite improvements in the availability of information on the .gov website, businesses still struggle with the complexity of processes, such as those related to post-Brexit import and export forms. These challenges highlight the need for more comprehensive and accessible support systems.
Response from HMRC and the Treasury
Dame Teresa Graham, chair of ABAB, acknowledges the feedback from businesses and notes that HMRC and the Treasury are taking steps to address these concerns.
Priorities include enhancing the quality of helpline services and creating more user-friendly online resources, aiming to alleviate some of the administrative burdens faced by businesses.
However, Graham cautions against merely imposing new taxes in the upcoming budget, emphasising the importance of addressing the legislative burden of taxation to foster a more supportive environment for businesses.
Challenges Facing HMRC
A major challenge for HMRC is the outdated IT infrastructure, which hampers its ability to implement essential digital upgrades. This has been a persistent issue impacting the efficiency and effectiveness of its services.
Moreover, limited resources further constrain HMRC’s capacity to deliver the level of service expected by businesses, underscoring the need for additional investment in technology and personnel.
The Wider Impact on Business Operations
Increased bureaucratic hurdles are now seen as a part of doing business in the UK, impacting various aspects of operational efficiency.
These inefficiencies not only hinder day-to-day activities but also affect the overall economic landscape by complicating tax compliance and administration.
Businesses are calling on the government to take definitive action to streamline processes and enhance service delivery.
The Call for Urgent Reform
The survey results serve as a call to action for the government to initiate comprehensive reforms within HMRC. There is a clear demand for modernisation and improved resource allocation to meet the expectations of UK businesses.
Caroline Miskin of the Institute of Chartered Accountants in England and Wales argues that the current state of affairs
Conclusion and Future Outlook
UK businesses and tax agents share a growing sense of frustration toward HMRC’s declining service standards, as evidenced by recent feedback.
The government’s acknowledgement and response to these concerns are crucial in restoring trust and ensuring efficient tax administration going forward.
The declining trust in HMRC among UK businesses is a pressing issue that necessitates immediate attention and reform. Addressing inefficiencies and improving service quality are essential steps toward rebuilding confidence and supporting economic growth.
