Two thirds of accountants say poor HMRC service is hurting small businesses

Two thirds of accountants say poor services from HMRC are having a negative impact on their business, with small businesses worst affected.

There has been a 14 per cent increase in negative views towards HMRC compared to October, according to the poll carried out exclusively on This is Money by the Association of Chartered Chartered Accountants.

The ACCA said HMRC is struggling to respond to “simple requests”, such as providing VAT numbers, which it says is harming the efficiency and productivity of small businesses.

This is Money has received numerous reports of problems obtaining a VAT number, including one furious business owner who had been waiting for more than three months.

The lack of investment in HMRC has made this problem worse, ACCA said, with the recent Budget proving disappointing for business owners.

HMRC has struggled with delays since the pandemic, having cut its customer service workforce from 25,000 to 19,500 over five years.

The association reported that 69 per cent of accountants said the Budget would make “neither any change nor a negative impact on the UK’s financial outlook”, with one respondent calling the Chancellor’s Budget “a bait and switch”. Labor”.

Glenn Collins, head of strategic and technical engagement at ACCA, said: “Our members regularly report to us about delays in basic requests such as VAT registration numbers, and a serious shortage qualified personnel to handle more complex requests.

“This most recent survey reiterates our previous comments to the Chancellor and HMRC and shows that within six months service levels have declined further.”

He added: “ACCA will continue to call on the Chancellor to properly fund HMRC, raise levels of service standards and rely wherever possible on accredited financial professionals to ensure accuracy at all levels .

The ACCA poll included 304 people, carried out 12 days after the March 6 budget.

U-turn on closure of HRMC helpline

The data follows Tuesday’s announcement that HMRC plans to ax its helpline services from April 8 until September, instead directing taxpayers to its online services and chatbots.

The Tax Office has today backtracked on the policy, saying: “Changes to the self-assessment, VAT and PAYE helplines that have been announced will be paused while HMRC engages with stakeholders on how to ensure the needs of all taxpayers are met.”

The company is committed to moving its customers toward online services “in the longer term.”

A Treasury Committee spokesperson said: “We welcome the decision to reverse yesterday’s ill-advised announcement.

“While we do not oppose the expansion of digital services for those who wish to use them, we are completely unconvinced that HMRC is sufficiently prepared to impose such a significant change in the way it serves taxpayers.”

“Planned changes to the way HMRC phone lines work have been poorly managed from the start.

“Questions remain about the extent to which the department prioritizes its own needs over those of law-abiding and vulnerable taxpayers.”