Accountancy Alert: Navigating HMRC Hurdles – The Push for Urgent Reforms

Accountancy professionals are facing significant hurdles when it comes to liaising with HMRC, with an urgent call for enhancements ringing clear.

A staggering 93% of professionals surveyed by the Association of Chartered Certified Accountants (ACCA) have vocalised the necessity for urgent reforms in at least three fundamental areas: slashing the lengthy call waiting times, refining the call handling infrastructure with features like queue status and call-back options, and bolstering communication efforts with a more robust email system.

More than half (52%) of those surveyed highlighted that the subpar service levels from HMRC are having a detrimental impact on both their productivity and that of their clients.

For many members of the ACCA, navigating the service landscape of HMRC has become an increasingly burdensome task in recent months. An ACCA member from the southeast expressed their frustration, mentioning that initiating a formal complaint when HMRC misses its own deadlines has become a routine – often the sole means to garner a response.

Glenn Collins, the ACCA's Head of Technical and Strategic Engagement, has shed light on the persistent struggles that members face when dealing with HMRC. Accountants, he noted, are often met with a sense of dread when reaching out to HMRC, anticipating the potential loss of countless hours addressing straightforward tax concerns – a costly issue for all parties involved.

The ACCA has been vocal about the need for better communication from HMRC. A streamlined process for qualified accountants, enhanced email communications, and faster response times are among the improvements being urged to alleviate the challenges faced by their members.

The current economic pinch, exacerbated by soaring inflation, means accountants are spending precious hours attempting to make contact with HMRC – time that could be otherwise invested in supporting their clients through tough economic times.

HMRC acknowledges the heightened demand for its services and has outlined plans to bolster its online self-service offerings as a means to alleviate the strains on their call centers. This digital push anticipates a 30% reduction in telephone-based inquiries by the end of 2024.

Jim Harra, the Chief Executive of HMRC, addressed the Treasury Committee last month, conceding that the existing resources are insufficient to meet customer service expectations via traditional phone and mail channels. HMRC’s strategy pivots towards minimizing direct contact and promoting digital alternatives, aiming for a 30% contact reduction to meet service standards with the scaled-back resources.

ACCA members have expressed their grievances, noting enduring struggles to resolve what should be straightforward tasks such as securing VAT registration numbers or authorizing tax agents, with some cases dragging on for weeks or even months.

The repercussions of HMRC's operational inefficiencies were succinctly captured by a London-based respondent: "The inefficiencies of HMRC are costing the government money."

CJC Accountancy Ltd. understands these challenges all too well and advocates for a smoother, more efficient engagement with HMRC. We are committed to staying abreast of these developments and strategies, ensuring our clients navigate these complexities with minimal disruption to their business operations.