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

3 results

16 Conclusion Deferred

3rd Report - HMRC Customer Service…

HMRC's tax debt remains stubbornly high at £43 billion, significantly above pre-pandemic levels.

The amount of tax debt owed by taxpayers to HMRC fell only marginally in 2023–24, from £43.9 billion at 31 March 2023 to £43.0 billion at 31 March 2024 (5.1% of annual tax revenues). This compares with a debt balance … Read more

Government Response

HMRC received more funding for debt collection and will have more staff in 2025-26. HMRC will respond in September 2025 with its expectations for the tax debt balance by 2029-30 and plans for older debts, following the Spending Review Phase 2.

HM Treasury

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17 Recommendation Deferred

3rd Report - HMRC Customer Service…

High levels of new tax debt continue, prompting HMRC to secure funding for more staff.

HMRC said it is still seeing very high levels of new debt coming into the system, largely as a result of cash-flow issues in small businesses.49 In the Autumn Budget 2024 it received funding for a further 1,800 debt management … Read more

Government Response

HMRC will respond in September 2025 with its expectations for the tax debt balance by 2029-30 and plans for older debts, allowing for the outcome of the Spending Review Phase 2 to be taken into consideration. They also mention increased staffing and efforts to reduce new debt.

HM Treasury

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18 Recommendation Deferred

3rd Report - HMRC Customer Service…

Older HMRC debts are less likely to be repaid, requiring tailored interventions.

As HMRC’s debts get older, they are less likely to be repaid.52 HMRC stressed the importance of tackling the new debt before it ages.53 We asked whether HMRC has a new approach planned for tackling older debts.54 It said it … Read more

Government Response

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