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HMRC complaints hit a five-year high
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HMRC complaints hit a five-year high

#HMRC #Complaints #Tax #Customer Satisfaction #Service Targets #Redress #Digital Services #Taxpayer #Accountancy #Public Sector

📌 Key Takeaways

  • HMRC complaints reached a five-year high of 93,589 in 2024-25.
  • HMRC missed service targets for phone calls, post response, and customer satisfaction.
  • Average financial redress paid was £125.27 in 2024-25, the lowest in five years.
  • Delays in processing repayments are causing hardship for taxpayers.
  • Experts blame HMRC's shift to digital services without adequate human support and funding cuts.
  • HMRC reports a decrease in complaints and improved service this year.

📖 Full Retelling

Complaints about HM Revenue & Customs (HMRC) have reached a five-year high, with 93,589 complaints in 2024-25, up from 78,542 in 2020-21. This increase coincides with missed service targets for phone calls, post response, and overall customer satisfaction in the nine months to December 2025. The average financial redress paid was £125.27 in 2024-25, the lowest in five years. Delays in processing repayments for marriage allowance claims, tax from employment or pensions, self-assessment, and penalty appeals are contributing to taxpayer frustration. Experts attribute the rise to HMRC's push towards digital systems without sufficient human support, exacerbated by funding pressures and job cuts. While HMRC reports a decrease in complaints this year and improved service, the underlying issues remain a concern.

🏷️ Themes

Customer Service, Taxation, Government Efficiency, Digital Transformation, Public Sector Accountability

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Deep Analysis

Why It Matters

The rise in HMRC complaints indicates a growing dissatisfaction among taxpayers with the tax authority's services. This poses challenges for both individual taxpayers facing difficulties and the government's ability to effectively collect revenue and administer tax policy. It highlights potential systemic issues within HMRC's operations.

Context & Background

  • HMRC has faced criticism regarding customer service in recent years.
  • HMRC has been encouraging online tax management to reduce costs.
  • Funding pressures and job cuts have impacted HMRC's call-handling performance.

What Happens Next

HMRC is investing in digital services and staff training, aiming to improve service quality. Further data releases will likely provide more insight into the effectiveness of these initiatives. Ongoing scrutiny from the National Audit Office and professional bodies is expected.

Frequently Asked Questions

What is the primary reason for the increase in complaints?

Delayed service in areas like repayments, post response, and processing claims is a key factor.

How does HMRC plan to address the complaint increase?

HMRC is investing £500 million in digital services and increasing staff levels.

What is the average redress amount paid by HMRC?

The average redress amount in 2024-25 was £125.27, the lowest in the past five years.

Who submitted the data regarding the increase in complaints?

The Contentious Tax Group, a network of tax disputes specialists, submitted the data.

Original Source
HMRC complaints hit a five-year high on x (opens in a new window) HMRC complaints hit a five-year high on facebook (opens in a new window) HMRC complaints hit a five-year high on linkedin (opens in a new window) HMRC complaints hit a five-year high on whatsapp (opens in a new window) Save HMRC complaints hit a five-year high on x (opens in a new window) HMRC complaints hit a five-year high on facebook (opens in a new window) HMRC complaints hit a five-year high on linkedin (opens in a new window) HMRC complaints hit a five-year high on whatsapp (opens in a new window) Save Emma Agyemang Published February 28 2026 Jump to comments section Print this page Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Complaints about HM Revenue & Customs have reached a five-year high, new data has shown, as the tax office continues to miss its targets for overall customer satisfaction, answering phone calls and responding to post. The number of taxpayers who complained about HMRC hit 93,589 in 2024-25, up from 78,542 complaints in 2020-21, according to data released under the Freedom of Information Act. The rise in complaints occurred at the same time as an increase in the number of cases in which redress was paid by the tax authority, from 11,333 in 2020-21 to 15,304 in 2024-25. The average amount paid in cases where financial redress was made was just £125.27 in 2024-25, the lowest over the five-year period. Separate service data released by HMRC this month showed the department missed its service targets for answering phone calls, responding to post, and overall customer satisfaction in the nine months to December 2025. “Every year thousands of people suffer financial loss, wasted time and needless distress because HMRC struggles to deliver the basics,” said Andrew Park, partner at Price Bailey, an accountancy firm. “HMRC is pushing taxpayers towards digital systems that are not yet ready, while withdraw...
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Source

ft.com

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