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Self assessment returns hit by processing delays

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Accountants are still waiting for self assessment returns from the 2020–21 tax year to be processed, with advisers reporting of estimated wait times of 12 weeks.  

22nd Jul 2022
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After the release of HMRC’s annual report, where chief executive Jim Harra apologised to agents for delays, members of the AccountingWEB community have expressed their anger with the department over long and inconsistent wait times for self assessment returns to be processed.

The tip of the iceberg

In a recent post on Any Answers, user MKH sounded the alarm on the issue, writing that his firm was experiencing significant delays, putting increasing pressure on him and his clients. 

“We have noticed that some 2020–21 returns are still not processed – all submitted last year – and refunds showing for 2021–22 as no liability has been set for the on account payments due,” MKH wrote, adding that one seemingly simple return in particular for a sole trader client was estimated to take 12 weeks by the HMRC agent. 

Other users were quick to air their own grievances with the delays, arguing that clients were becoming impatient. 

Contributor Hometing got in touch with HMRC to highlight the issue, saying: “After my urgent three-day referral got upgraded – to a call back within 20 weeks.” However they have “not had a single call back to me over the past 12 months”.

On the other hand, users such as LionofLudesch mentioned how their backlog had been dealt with by HMRC in “under a fortnight”, suggesting a level of inconsistency from the department when it comes to processing. 

HMRC respond

When we contacted the department for comment, HMRC did not offer an estimate as to when such returns would likely be processed. However, it did offer another apology to customers for the current delays in service, noting that the first quarter is a particularly active time.

“The first quarter of the tax year is always our busiest period and we have seen a number of factors affecting demand on our services and our available resource to manage that demand – so some customers have continued to experience issues using our services,” an HMRC spokesperson said.

Work is underway to bounce back from the pandemic as well, according to HMRC, who said that it has “made good progress in recovering our services, like reducing our post queues by 1.5m items last year”.

“Customer satisfaction is at 80% and we’re seeing record take-up of digital services such as the HMRC app,” the HMRC spokesperson continued, “but we know there’s more to do and we’re recruiting more staff to improve areas under pressure.”

Remarkable times

The ire from the community has come swiftly after the recent annual report from HMRC. Harra admitted in the executive summary that customer service levels were not “where we would wish them to be”, but he was happy with the department’s work in the face of myriad crises.

“Put simply, we stepped up to address huge new challenges that mattered to the whole of the UK and delivered the urgent support our customers needed quickly and effectively,” Hara said.

During the pandemic, HMRC deployed much of its workforce to help with the crisis, something which Harra understood and was looking to adjust. Yet, with the department still stretched thin due to the effects of both Covid and Brexit, HMRC’s response will likely offer little comfort to AccountingWEB members and the wider profession who continue to battle to retain clients in the face of the mounting backlog. 

Replies (8)

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By SteveHa
22nd Jul 2022 14:18

Quote:
Harra admitted in the executive summary that customer service levels were not “where we would wish them to be”

Ermm, non-existant is likely never to be where they wish them to be.

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Replying to SteveHa:
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By Hugo Fair
22nd Jul 2022 16:37

The beauty of Jim's carefully worded verbiage is indeed that it means nothing.

He may well have been thinking 'I wish the customers would stop calling us, so that our service levels - maybe just one call per week - showed a reasonable proportion being answered'!

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By Paul Crowley
22nd Jul 2022 19:23

Same old HMRC excuses

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Replying to Paul Crowley:
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By Philysis
22nd Jul 2022 19:45

I quote Tommy Shelby , Those that make the rules have no rules! ,

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Replying to Paul Crowley:
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By Philysis
22nd Jul 2022 19:46

I quote Tommy Shelby , Those that make the rules have no rules! , party on guys whilst still workin from home

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By tedbuck
25th Jul 2022 10:52

I still want to know where this 80% comes from - nobody, and I mean nobody, I speak to thinks HMRC is competent most think it is an utter shambles yet this creature at the helm keeps telling the world that 80% of people are satisfied. Does he only speak to people who have just received a repayment?
Or perhaps it is data sponged of one of their customer testing kits. The questions asked beg for a yes answer and they don't ask questions that would anticipate a negative response. Dishonest I call it Mr Harra. Your organisation is not fit for purpose. Everyone else has had to cope with Covid but if what we read is to be believed HMRC were the last to return to work and some still haven't. How on earth can you conduct a tax collection organisation with people sitting at home with their laptops. All sorts of issues there data security being at the top and HMRC haven't the best record there anyway. Think of all the letters you get about clients who aren't and never have been clients and it goes on from there.
Perhaps when we get a new PM (Heaven help us there) and thus a new Chancellor we might all write to him and ask that a serious external review be made of HMRC so that someone with sense and ability can be appointed to sort it out - Jim can get his knighthood as a payoff, as they do, but we just might get some sense back into the system.

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Replying to tedbuck:
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By Hemantkumar Patel
25th Jul 2022 16:36

Agree 100%

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Morph
By kevinringer
29th Jul 2022 12:13

SA has been in place for 25 years. Today most SA Returns are submitted digitally. 25 years ago most SA Returns were submitted on paper. Yet the processing backlog today is bigger than it has ever been. I've still got Returns filed 9 months ago that are not processed, despite numerous calls to the ADL. If HMRC are still unable to cope with this long-established system which only requires 1x Tax Return a year, how will HMRC cope with MTD ITSA which requires sometimes over a dozen Tax Returns a year? But one fundamental question: why is there a backlog at all? Surely HMRC practice the end-to-end digital-by-default that it preaches? Surely when I submit a digital Tax Return it goes through HMRC's computer system digitally without any manual intervention. These delays highlight the amount of manual processes HMRC still has which proves HMRC does not practice what it preaches.

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