Today the Financial Secretary has announced £51 million in funding for HMRC to help them deal with the pressures on their phonelines and help provide the level of services tax payers expect.
This announcement does not affect the HMRC strategy to become a digital first tax administration and they continue to welcome your cooperation and support on that journey.
HMRC statement – 13th May 2024
Statement by Nigel Hiddleston, the Financial Secretary to the Treasury and Baroness Vere of Norbiton, the Treasury Lords Minister.
HMRC plays a crucial role in collecting revenue to fund our vital public services.
The department’s strategy is to become a digital first tax administration. This involves helping customers move to online services with the aim to make services easier for customers, and for HMRC to operate more efficiently.
Last year HMRC received over 3 million calls on just three things that can easily be done: resetting an online password, getting a tax code, and getting a National Insurance number. Shifting customer contact such as this to online interactions is helping to, and will continue to help, reduce demand on phone lines and allow HMRC to prioritise calls for those who really need to speak to an adviser. This is a fine example of a tangible way to improve public sector productivity.
This digital first strategy is the correct long-term vision for tax administration. In support of this, the Chancellor invested over £136 million in the 2021 Spending Review to enable HMRC to enhance their digital services. HMRC received a £900 million cash increase over this Parliament, from £4.3 billion in 2019-20 to £5.2 billion in 2024-25.
However, the Government is clear that while HMRC continue to make this digital transition, customers deserve a reliable and responsive service on traditional contact methods such as the phone lines.
Therefore today the Government is providing HMRC with £51 million in new funding to bring HMRC’s phoneline service back up to the published target of 85% of calls to HMRC advisers being answered.
Today’s additional funding enables HMRC to meet the performance standards on its phone lines that its customers expect, while continuing the transition to a digital first model of tax administration.
The Government is fully committed to providing HMRC with the resources it needs to meet the needs of all its customers, and will continue to do so.
PAYadvice 13/5/2024