HMRC - 26.03.2024

VAT helpline services slashed

A shortage of staff and more tax-paying customers with complex issues mean that HMRC is struggling to cope. How could it affect your business?

The problem. For five successive years, HMRC’s response levels to customer enquiries have fallen rapidly, with the Public Accounts Committee (PAC) describing its service standard as being at an “all-time low”, with long waits on phone lines. In some cases, helpline services have been cut and will not return.

VAT. HMRC’s phone service for VAT is still available. In a disappointing move, it announced on 19 March 2024 that the helpline will only be open for five business days ahead of the filing deadline. After a backlash, this has been “paused”. However, officers will not answer complex queries about a particular VAT problem, instead referring you to HMRC’s published guidance (see The next step ).

Alternative. HMRC’s view is that taxpayers and business owners should use its website and online facilities to resolve their problems. HMRC told the PAC’s inquiry that it did not have enough resources to properly meet the rising demand for its phone and postal services. Its strategy is to direct callers to use digital services and online options.

Reliability. HMRC insists that its online services are of a high quality and easy to use. However, the PAC noted that HMRC is “apparently struggling to cope”.

Tip. If you have a VAT query which, to quote HMRC, “requires a quick answer” ask its digital assistant online.

Small debts. The PAC also rebuked HMRC for taking aggressive action over small debts, noting that it had heard about cases where taxpayers are being pursued repeatedly for often trivial amounts. It is worth checking your online VAT account to confirm that your balance owed is nil, i.e. to ensure there is not a small amount owed for interest or a similar liability, which could lead to HMRC enforcement action.

Next step - Link to HMRC press release

HMRC’s VAT helpline will only be open for complex queries. In order to avoid long delays you should look at alternative options, such as the digital assistant, to resolve non-complex queries.

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