Taxpayers and their agents are still not receiving an acceptable level of customer service. In the last five years, HMRC has reduced its customer service staff numbers from 25,500 to 19,500. During the pandemic, HMRC’s performance in replying to post or handling calls fell significantly, partly because it did not have sufficient customer service staff to manage the pressures that the pandemic brought. We were surprised to learn that at times in the past, HMRC has simply closed its telephone line when it could not cope with demand. It is not acceptable not to answer calls from people who are trying to pay the government money. HMRC’s plan for improving customer service is to continue digitalising the tax system, moving people away from phone and post onto online systems. Taxpayers report being more satisfied with HMRC’s digital services than its phone and post services. However, we are not convinced that its plans will sustainably reduce demand for traditional channels or deal with the unacceptable level of service that taxpayers and agents are currently suffering. The move to online services will not happen quickly and will not be appropriate for all circumstances or customers. HMRC performance in 2021–22 7 Recommendation: HMRC should write to the Committee setting out its plan to improve customer service to adequate levels as quickly as possible, and within three months, including: • the metrics HMRC will use to monitor its customer service performance, including metrics it needs to demonstrate it can answer calls and deal with post in a timely manner; • the level of customer service taxpayers and their agents can expect to receive over the next three years against each of these performance metrics; • how it will support customers who are unable to engage digitally or have a preference for post or telephone contact; and • its contingency arrangements if its plans to reduce demand for traditional channels are unsuccessful or take longer to implement.