UK Inquiry Tracker

HMRC Customer Service and Accounts 2023-24

Public Accounts Committee Closed Inquiry

Opened: 31 Oct 2024 Closed: 3 Apr 2025 Parliament page

HMRC reported the highest tax revenues on record in 2023-24, reflecting the freezing of income tax bands and thresholds, and an increase in the rate of Corporation Tax from 19% to 25%. Tax debt has now fallen marginally, but remains significantly higher than before the pandemic - £43bn in March … Read more HMRC reported the highest tax revenues on record in 2023-24, reflecting the freezing of income tax bands and thresholds, and an increase in the rate of Corporation Tax from 19% to 25%. Tax debt has now fallen marginally, but remains significantly higher than before the pandemic - £43bn in March 2024, down 1.9% since 2023, but up from around £15bn between 2015-16 and 2019-20. In 2023-24, the estimate of the amount of tax HMRC may not ultimately be able to collect from taxpayers continued to rise, from 32% of the amount owed but not paid in 2022-23 to 45.4% in 2023-24. The National Audit Office (NAO) found in 2024 that delivering responsive customer service continued to be one of HMRC’s biggest challenges. Its telephone answering performance continued to decline in 2023-24. The report also highlighted levels of error and fraud in tax credits, Corporation Tax R&D reliefs and Child Benefit expenditure. A separate NAO report on HMRC’s customer service found that its telephone lines were not delivering, with customers cumulatively spending 798 years on hold waiting to speak with the tax authority in 2022-23 – more than double the time spent waiting in 2019-20. The Committee’s report on HMRC’s performance in 2022-23 warned that customer service levels at HMRC were at an all-time low, as service levels at the tax authority continued a five-year decline. Written evidence published by the Committee demonstrated the resulting exasperation caused to the taxpayer. Based on the two NAO reports, the Committee will hear from senior HMRC officials on subjects including: - HMRC’s performance in collecting revenue and managing compliance; - Customer service and debt management performance; and - Error and fraud. Please note that the Committee cannot help with individual cases. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. If you have evidence on these issues please submit it here by 23:59 on Monday 18 November 2024. Show less

10 Recommendations

12 Conclusions

1 Report

1 Oral session

4 Letters

1 Event

Activity timeline 8 events

4 Sep
2025

Correspondence

Letter from the Chief Executive and First Permanent Secretary of HM Revenue and Customs relating to the 3rd Report of Session 2024-25, HMRC…

6 May
2025

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Third report from Session 2024-25

6 Feb
2025

Correspondence

Letter to the Chief Executive and First Permanent Secretary of HM Revenue and Customs relating to Offshore tax gap and high net worth indiv…

22 Jan
2025

Report published

3rd Report - HMRC Customer Service and Accounts

22 Jan
2025

Correspondence

Letter to the Permanent Secretary of HM Revenue and Customs relating to Third Report of Session 2024–25: HMRC Customer Service and Accounts…

22 Jan
2025

Correspondence

Letter from the Permanent Secretary of HM Revenue and Customs relating to Third Report of Session 2024–25: HMRC Customer Service and Accoun…

28 Nov
2024

Oral evidence

HMRC Customer Service and Accounts 2023-24

28 Nov
2024

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

HMRC Customer Service and Accounts 2023-24

Oral evidence sessions 1 session

28 Nov 2024

View on parliament.uk

HMRC Customer Service and Accounts 2023-24

Justin Holliday · HMRC Myrtle Lloyd · HMRC Sir Jim Harra · HMRC

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
3rd Report - HMRC Customer Service and Accounts	HC 347	22 Jan 2025	22	Responded

Recommendations & Conclusions

4 results

4 Conclusion Acknowledged

3rd Report - HMRC Customer Service…

Prioritise introducing systems for customers to submit files and send secure digital messages.

HMRC does not provide an efficient means for taxpayers to communicate digitally with HMRC. In 2022–23, HMRC received 22 million items of correspondence, including physical post and forms and interactive forms. Approximately 70% of this comes in through the post. … Read more

Government Response

The government agrees with the recommendation to prioritise secure digital communication channels as part of its digital roadmap, affirming this will improve customer service and increase yield.

HM Treasury

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12 Recommendation Acknowledged

3rd Report - HMRC Customer Service…

Many calls could be digital, yet some services remain offline and customers need assistance.

While the use of digital services has increased, HMRC still estimates that 66% of telephone calls could have been handled online. HMRC said this partly reflects customer awareness of the extent of its digital services. It started a campaign in … Read more

Government Response

HMRC is considering resourcing as part of the Spending Review, further digitizing customer services, and will publish a Transformation Roadmap in 2025 outlining plans to extend digital services and provide better customer service, including measures for digital inclusion and support.

HM Treasury

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15 Recommendation Acknowledged

3rd Report - HMRC Customer Service…

HMRC lags in secure digital file sharing; plans secure messaging via app and tax accounts.

HMRC said it uses email sparingly due to security concerns.42 Several organisations representing taxpayers and their agents wrote to us to highlight the need for a secure digital way to share files and correspondence with HMRC so that communication by … Read more

Government Response

HMRC is considering options to enhance and improve its current services to give taxpayers and intermediaries secure digital channels for communication and document exchange.

HM Treasury

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21 Recommendation Acknowledged

3rd Report - HMRC Customer Service…

HMRC's tax gap estimations, particularly for offshore and foreign income, remain uncertain.

HMRC said that its calculation of the tax gap uses estimation and judgement, and that some parts of it are more certain than others.62 It said in October 2024 it published experimental statistics on the proportion of the tax gap … Read more

Government Response

HMRC will assess the feasibility of extending the published estimate of the tax gap arising from undisclosed foreign income, including engaging with academics and scaling up compliance activity.

HM Treasury

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Government Response AI assessment · 21 of 10 classified

Accepted 11

Acknowledged 4

Deferred 3

Rejected 3

Total 10 recs + 12 conclusions

Correspondence 4 letters

4 Sep 2025 To committee Letter from the Chief Executive and First Permanent Secretary of HM Revenue and Customs relating to the 3rd Report of Session 2024-25, HMRC Customer Service and Accounts, recommendation 5, 22 July 2025

Parliament page

6 Feb 2025 From committee Letter to the Chief Executive and First Permanent Secretary of HM Revenue and Customs relating to Offshore tax gap and high net worth individuals, 05 February 2025

Parliament page

22 Jan 2025 From committee Letter to the Permanent Secretary of HM Revenue and Customs relating to Third Report of Session 2024–25: HMRC Customer Service and Accounts, 22 January 2025

Parliament page

22 Jan 2025 To committee Letter from the Permanent Secretary of HM Revenue and Customs relating to Third Report of Session 2024–25: HMRC Customer Service and Accounts, 21 January 2025

Parliament page