MPs warn over decision to move HMRC online

The Commons Public Accounts Committee (PAC) has expressed concern over plans to move HM Revenue and Customs (HMRC) services online, warning the move could lead to another potentially ‘disastrous decline’ in customer service.

According to HMRC the average waiting time is now five minutes. However, the PAC report claims it is ‘not convinced’ the tax authority will not repeat the ‘collapse’ of 2014-15, when call waiting times tripled.

The report highlighted that HMRC is taking measures to save £98 million by 2021, which include employing 16 per cent fewer staff and closing 137 offices. Those remaining will be largely working in 13 regional centres.

The report said: “HMRC expects that, as it introduces more online services, a channel shift will occur resulting in a reduction in the demand for phone calls as more people will be able to meet their needs through online services.

"HMRC is staking a great deal on the success of its plans to digitise the tax system, but once again it lacks an adequate plan if demand for its call centres does not reduce as quickly as it hopes."

Meg Hillier, chairwoman of the committee, said: "The lack of a convincing fall-back plan to safeguard service as HMRC undergoes significant change remains a looming threat to its ability to collect tax from individuals simply trying to pay their fair share.

"By the spring we will expect to see evidence that HMRC has agreed measures with the Treasury to ensure it is not left playing catch-up at taxpayers' expense."

A spokesman for HMRC countered: "We now consistently answer 90 per cent of calls first time, in an average of less than five minutes. We have invested heavily in customer services, recruiting more than 3,000 new staff who are also available outside normal office hours when many of our customers choose to call us.

"This is alongside a new range of popular digital channels for customers to get the information and support they need without having to pick up a phone or pen."