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People speaking out together | accountingweb | Initiative: Work With Us
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HMRC’s poor service requires action, not moaning

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Instead of just complaining about how HMRC’s poor service levels are affecting the accountancy and bookkeeping profession, Claire Bartlett decided the time has come to speak out together to make things change.

1st Jun 2023
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After another painful phone call to HMRC back in January I sat at my desk with my head in my hands. Then I did what we all do – I had a moan to my colleagues and peers. Everyone was feeling the same frustrations and the general mood was that HMRC had become more of a hindrance than a help. 

That’s when it hit me – nothing changes unless we change something. 

So, once the tax season was over for another year, I launched an initiative Work With Us, aiming to improve the strained relationship between HMRC and the bookkeeping/accounting community. As a profession, we are struggling to best serve our clients due to HMRC delays and backlog. It cannot continue so I hope by working together we can help HMRC overcome its lack of funding and staffing to become the support we need once again. 

Since Covid hit us in 2020, HMRC has been drowning under a backlog of enquiries and fighting hard to play catch up. Throw Making Tax Digital (MTD) into the mix and HMRC has a lot on its plate, so it is somewhat understandable that it finds itself in the position it is in. However, it is unsustainable and the repercussions of the failings are now being felt far and wide. 

Poor service levels

The impact that the poor service we are currently receiving has on our businesses goes much deeper than just being held on hold for what feels like days. It is not just an inconvenience, it is costing our profession an estimated hundreds of thousands if not millions of lost revenues each year. Between the lost time spent on hold and the extra time taken to repeatedly chase up resolutions to claims, appeals and queries, plus constant communications with clients regarding the delays and lack of response, we are losing countless hours across our businesses that we cannot bill our clients for. 

This does not even take into account the repercussions for our clients’ businesses. One client of ours waited nearly two years for his Construction Industry Scheme repayment of nearly £20,000 and unfortunately, that is not a unique case. You have to then think about the further implications to our wider economy. 

If we were able to bill for that time, we would be able to hire more staff and work with more clients helping more business owners be tax compliant and in control of their financial obligations. 

If our clients got their repayments quicker, they would be able to take on more staff and grow their businesses to strengthen the economy. Fewer businesses would then fold as their cashflow would be healthier and not tied up with HMRC. 

The wider repercussions of the current situation are endless and it is impossible to put a cost to the economy on this.

Time for action

But what can actually be done about it? 

  • We need to get our voice heard by HMRC and there are many channels already available for us to do this. 
  • We can spend two minutes giving our feedback after a call. 
  • We can use the consultations on gov.uk website to give our feedback on proposed changes to tax schemes. 
  • We can communicate with Administrative Burdens Advisory Board and share our views.
  • We can contact our governing bodies regarding the issues and repercussions so they can share the real situation with HMRC on our behalf. 

And this is just the start. 

Time to be heard

There are many workshops, meetings and consultations happening behind the scenes on our behalf, which is fantastic, but it is time we joined the party as a collective and had our voice heard. 

I have asked accountants and bookkeepers for their feedback on their ideas for positive change at HMRC (and you can share your thoughts on this form or by commenting below). 

I have already taken these comments to the Houses of Parliament, where MP Saqib Bhatti showed interest in the Work With Us initiative and about how we can start bringing positive changes to the fractured relationship between HMRC and the profession. As an accountant himself, Bhatti really understood our current situation, and we agreed it is vital to come to HMRC with solutions not just problems. So let’s come together and become part of the solution to benefit our profession, our clients’ businesses and ultimately the wider economy.

Replies (15)

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Stepurhan
By stepurhan
01st Jun 2023 16:24

I admire the optimism, but there does not seem to be any proof that any of the avenues you suggest are any more effective.

For example, the governing bodies have only recently said anything about MTD when accountants have been complaining about it publicly for years. Or how about this from the last report of the Administrative Burdens Advisory Board

ABAB Report wrote:
We remain firmly of the view that digitalisation can improve tax administration both for HMRC and for taxpayers. Digital technology can help businesses to operate more efficiently, helping to drive productivity and growth.

With their "five areas of particular concern" all being related to supporting businesses to cope with the changes from MTD, not addressing whether MTD as planned is a good idea.

If you are going to get accountants to spend time taking action, we need some reassurance it won't be energy wasted shouting into the void.

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Replying to stepurhan:
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By Jo Nokes
01st Jun 2023 23:27

I agree, it's very hard to understand why the ICAEW didn't come out with their criticisms until recently, and that was only after HMRC finally gave way on the £10k level, and postponed MTD for a couple more years. If they didn't engage, how can we do anything

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By Hugo Fair
01st Jun 2023 19:25

It can be quite hard not to sound like Eeyore when passing comment on this, but ... all the points & suggestions are both obvious and good, which is why they crop up every 10 years or so!

The difference each time lies not with the good intentions of practitioners (or indeed the quality of their input) ... it is the degraded seriousness with which the upper echelons of HMRC accept (or not) the needs & benefits of engaging in the process.

20 years ago ... I could volunteer to take part in a variety of forums (some talking shops + some hands-on / some pre-legislative policy + some post 'live' guidance reviews / some sector specific + some focussed on an area of tax returns / etc).
Both 'sides' treated each other with respect, and HMRC fielded permanent teams whose purpose was to assist with processing the objectives & findings ... often with exactly the kind of 'wins' for all that the article above envisages (whether a single data item, a whole new submission process/form, or the introduction of phasing to implementation with scheduled review points, and so on).

10 years ago ... HMRC started removing support (and resources) - first from involvement with these 3rd-party groups and then from their own specialist groups - giving us all the first indications of what we now experience daily (no named contacts + impossibility of exchanging communications quickly or even raising generic questions of importance).
This coincided with some senior changes and a (presumably) quite deliberate change in culture ... best summed up by the "admit nothing, claim everything is BAU, if necessary deny/lose anything that looks like evidence" that I overheard in a canteen at 100 Parliament St.

Now (still hiding behind Covid) ... no longer any pretence that 'customers' (in any guise) deserve to be heard or even acknowledged. Co-operative groups, gone. OTS, gone. In-house support groups, going. PAC, ignored. Rogue state, established (but directionless). Heaven help us all ...

Thanks (12)
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By Open all hours
01st Jun 2023 21:28

We put 10 positive, constructive suggestions forward through our MP who is undersec. for enterprise. The reply from Victoria Atkins arrived within 10 minutes of and was almost word for word the press release which appeared in Taxation magazine last week. We doubt our email had even been read, let alone considered. The first huge task is finding a way to even make them listen. We despair of them taking any notice of anything, the course is set and HMRC will not change course until contact is made with an iceberg which will come in the form of total meltdown of one or more of their basic functions.
That said, we are still willing to join any effort to save the country from the total incompetence of HMRC under its current leadership.

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By ireallyshouldknowthisbut
02nd Jun 2023 09:24

Its sounds like you are trying to resurrect "Working Together" the now long abandoned channel HMRC had this exact purpose of identifying issues and solving them for mutual benefit.

The only remnant of which I think is the agents forum which I am sure you know is an absolute joke.

I am afraid much as I admire your attempts here, without two way listening, and more importantly a will to action your attempts to improve matters all your efforts will be wasted.

Really the only tools available are direct involvement in surveys and consultations, plus lobbying your professional body. Of course what the professional bodies say is largely ignored too. MP's contact just gets you a "cut'n'paste" fob off letter. its really only useful on a popular issues so MP's can feel the 'weight of feeling'. I have only ever had one genuinely useful contact with an MP, and that was because they agreed with me.

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By sodge2000
02nd Jun 2023 10:58

I have been working with a UK based Film Producer who is entitled to receive the Film Industry Credit. Both him and myself are aware of what is needed to claim this but not HOW. Despite numerous emails and phone calls to HMRC we are no further forward. Answers to phone queries have included:
"Never heard of it"
"Write in about it"
But best response so far "call Citizens Advice, they deal with benefit credits"
I also sent details of a change of address for my partners company. We receieved to letters both dated on the same day, one said the change of address had been denied and the other said the address had been changed. Both letters were sent to the new address

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Replying to sodge2000:
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By Hugo Fair
02nd Jun 2023 11:47

Absolutely no excuse for HMRC, but if you really *need* to find out more about how to make the claim then this lot offer an on-line tutorial (for £40) ... https://www.screenskills.com/bookings/how-to-claim-the-uk-film-tax-credi...

... and, No, I have nothing to do with them.

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Replying to sodge2000:
VAT
By Jason Croke
02nd Jun 2023 13:29

sodge2000 wrote:

I have been working with a UK based Film Producer who is entitled to receive the Film Industry Credit. Both him and myself are aware of what is needed to claim this but not HOW. Despite numerous emails and phone calls to HMRC we are no further forward. Answers to phone queries have included:
"Never heard of it"
"Write in about it"
But best response so far "call Citizens Advice, they deal with benefit credits"
I also sent details of a change of address for my partners company. We received to letters both dated on the same day, one said the change of address had been denied and the other said the address had been changed. Both letters were sent to the new address


Had similar when trying to deal with an issue relating to Plastic Packaging Tax, several calls and nobody had even heard of this "new" tax, which has been around for over 18 months now.
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Replying to sodge2000:
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By Jdopus
05th Jun 2023 12:44

If you're still stuck on this problem I have a decent background in this area and would be glad to help you - if you fire me a PM I can talk you through the process

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By raybackler
02nd Jun 2023 15:46

I don't want to repeat what has been said in the excellent replies so far, so all I'm going to say is that I agree with them and they are spot on. Your article summarises the problem and the effect on the economy very well, but no one is listening at HMRC or in Government.

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By Paul Craig
02nd Jun 2023 22:05

I'm not moaning but I am.

Amazing how people now think they can say things that are completely at odds with the truth and that people somehow will swallow it. Noting of course that many have, such is the level tolerance to 'spin' in our society.

So well done Claire for (not?) moaning. We all know HMRC service levels are appalling and we all know it won't change any time soon. Almost not worth moaning about is it ......

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Replying to Paul Craig:
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By Paul Craig
02nd Jun 2023 22:12

P.S. I'm not moaning ..... but .... try closing Insolvency cases. Total joke.

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By Mr J Andrews
03rd Jun 2023 11:57

Claire, you have asked for feedback with positive ideas for positive change at HMRC.
Quite simply , bring in accountability and get rid of the incumbent CEO for starters. Under Harra's reign, standards are worsening by the day.
This sort of tenure works well at the Vatican. But it certainly ain't at 100 Parliament St.

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paddle steamer
By DJKL
03rd Jun 2023 14:25

In days of yore when villeins were being oppressed they banded together and protested, tended to not end well for their leaders but was a reasonable way of clearing the air and in the longer term changes did slowly happen; perhaps accountants and their clients need pitchforks to make HMG listen.

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By listerramjet
05th Jun 2023 04:37

(One of) The problem with government is that it no longer understands the world it exists in. And I suppose arguably it never really did!

It doesn't need a workshop or a committee to work out that the tax rules are far too complex, and that HMRC likes playing with the complexity as much as the next person. So the first step should be to simplify the rules, which would be easily done by scrapping many of the individual taxes, and accepting that ultimately people pay all the taxes. Once this is done then collecting the stuff becomes a whole lot simpler, and so the second step would be to scrap HMRC and replace it with a privatised gubbins open to competition.

Personally I would also take away the government's credit card. Government Borrowing is more than just immoral. It is an open ended liability on tomorrow's taxpayer, and divorces government from the financial pain of its outlandish policies.

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