HMRC to close phone lines every summer

This trial was highly criticised by accountancy bodies and MPs, with the Treasury Select Committee last year grilling HMRC on the decision – which had been announced with just four days’ notice. 

However, HMRC said the seasonal pilot was “successful”, with calls initially spiking when the helpline reopened before returning to “expected levels”. 

Chair of the Treasury Select Committee Harriett Baldwin said: “It is a great shame that HMRC have decided now is the time to essentially close down any avenues for people to contact them over the phone for huge parts of the year. I say once again, these are well-meaning people just trying to get their taxes right.

“We’ve heard time and time again that every effort is being made to direct people to resolve issues online. The committee welcomes efforts to make the tax system more efficient but HMRC has not yet demonstrated that the department or the public are ready to make such a monumental change to how they resolve tax issues. 

“This should not be forced upon taxpayers until there is evidence that people know how to do their taxes on HMRC’s incredibly complex website.”

Others have warned that the new “seasonal” helpline will result in more taxpayers filing late and filling in their tax returns incorrectly, creating problems further down the line.

The Chartered Institute for Taxation has said it is concerned the summer trial could have led to a drop in the number of people filing on time. Official statistics suggest there were about 180,000 fewer filers in January 2024 compared to the previous year. 

Gary Ashford, of the CIOT, said the decision to make the summer closure permanent was “missguided”. 

“We are deeply dismayed that, so soon after the criticisms levelled at them by the Public Accounts Committee, and in the light of an inconclusive evaluation, HMRC has decided to make these big, permanent cuts to the help it provides to taxpayers. 

“If last year’s announcement of the summer closure of the self-assessment helpline was a ‘flashing indicator’ that HMRC can’t cope, today’s announcements are a blinding light.

“HMRC’s own evaluation of both the closure of the helpline in summer 2023, and the helpline restrictions during the 2024 self-assessment peak, concluded that it is too early to say if there has been a long-term shift from phone contact to online self-service. Yet HMRC have decided to go ahead anyway.”

The Institute of Chartered Accountants in England and Wales said the decision was “disappointing”, while Victoria Todd, of the Low Incomes Tax Reform Group, said: “HMRC’s online services, including guidance and the automated digital assistant, are not yet at the standard required to support a forced channel shift to digital.

“This increases the likelihood of errors and non-compliance, storing up problems for taxpayers and HMRC further down the line.”

HMRC has been focused on shifting customers online as it struggles to cope with a huge rise in people needing help with their tax affairs. Around three million taxpayers will be dragged into the 40pc income tax bracket over the next five years due to the freeze on tax thresholds.  

In addition to shutting the self-assessment helpline, the tax office is permanently closing its VAT helpline, except for the five business days leading up to the submission deadline every month. 

On top of this, the “pay-as-you-earn” (PAYE) helpline will no longer deal with calls to chase PAYE refunds, unless going online is not an option for the taxpayer. 

Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, said: “Online services have transformed our lives and often provide a better service for managing tax – they’re quicker, easier and always available.

“Changing our services to encourage customers to self-serve online wherever possible will allow our helpline advisers to focus support where it is most needed – helping those with complex tax queries and those who are vulnerable and need extra support.

“We must maximise every pound of taxpayers‘ money. Embracing online self-service allows us to help more customers and improve our customer service levels without spending additional public money.”