Jeremy Hunt orders HMRC to keep phone lines open

Jeremy Hunt has ordered HM Revenue & Customs (HMRC) to scrap plans to close its phone lines over the summer.

The Chancellor has intervened and told the tax office to “pause” the changes over fears that not all taxpayers’ needs will be met.

HMRC had said that from April 8 until Sept 29 – a period of six months – taxpayers will be unable to call them for help with their tax return as part of a bid to push customers online.

But The Telegraph can now reveal that the closures to the phone lines previously outlined will not go ahead.

A Treasury source said: “Encouraging customers to self-serve online wherever possible is the right thing to do, but that cannot be at the detriment of the general public and the vulnerable who need access to the helplines to support them with tax matters.

“That’s why ministers have halted this change immediately.”

Last month the Public Accounts Committee said HMRC’s customer service had hit an “all-time low”.

The latest statistics showed that nearly one million calls went unanswered in January, the tax office’s busiest month, with taxpayers scrambling to file for self-assessment tax returns on time in order to avoid automatic late fines.

On average those who got through had to wait 25 minutes before HMRC answered the phone.

The six-month closure would have coincided with an “annualised hours” pilot scheme that will involve 100 customer service staff working a three-day week during the summer period, generally a quieter month for the tax office, before working extra hours over the winter.

The Chancellor is understood to want to “pause” the changes so HMRC can do more to ensure all taxpayers’ needs are met.

Transition to digital

Ministers have not been sufficiently assured that there are relevant safeguards in place in the transition to digital, and want to see far greater focus on improving HMRC performance, before any such decisions are taken.

A source said that it was clear from engaging with stakeholders that there were concerns about HMRC’s original approach.

“The Treasury has acted on those concerns immediately, to ensure we can engage with them further about the best way forward,” the source said.

HMRC’s decision to permanently cut the helpline follows its summer closure between June 12 and Sept 4 last year.

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”.

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.