Dissatisfaction with the time taken by HMRC to resolve queries is driven partly by the taxpayer’s own experiences of customer service and by the department’s levels of communication, while there is a widespread view that the department is not bound by the same requirements as its uses, analysis has found
Latest research shows that expectations around how much time it would take HMRC to resolve their queries were mixed and varied by customer type, with three key factors shaping expectations.
These were the levels of knowledge, perceptions and experience of tax; experience with commercial and private sector organisations and social norms; and the type of contact channel used, with taxpayers of all types expecting to be able to self-serve and resolve queries online.
Service failure was a common experience among those interviewed. Ultimately, the time taken was unacceptable in situations where either having an unresolved query negatively impacted the customer, or the amount of time it took to reach a resolution was unexpected. Both instances made it more difficult for customers to plan and to manage their time, personal relationships and finances.
Respondents felt HMRC should communicate timelines, steps being taken and expectations of all parties. They felt HMRC should also provide acknowledgement of actions and confirmation of resolution. They also felt that the tone and manner of HMRC’s advisers should be improved to make them feel more valued, while the quality and consistency of advice or information provided should also be improved and apologies offered where appropriate.
Agents wanted to see clearer guidance on the query process, more communication of timeframes, evidence of correspondence and more information on VAT regulations on the HMRC website. All respondents wanted HMRC to match the sort of customer service they experienced with private sector financial organisations, where smaller queries were settled immediately and more complex questions passed onto an expert team, with details of how long it would take.
Commonly taxpayers had encountered numerous errors during the course of their query with HMRC, some of which were taxpayer generated while others were down to HMRC actions or incorrect advice. As well as lengthening the time it took to achieve a resolution, this fed into perceptions that there is a lack of parity in the relationship between HMRC and taxpayers; in that when HMRC makes an error it does not experience negative repercussions that are visible to the taxpayer.
Notably those with more experience of engaging with HMRC, typically agents and small businesses, noted a lack of fairness in the expectations placed on them, compared to those placed on HMRC as a government department. For instance, whereas taxpayers are expected to reply to HMRC within fixed timelines (e.g. 30 days), HMRC is not subject to similar time constraints; whereas taxpayers are subject to fines or may incur other financial costs as a result of ongoing queries, and HMRC is not subject to similar financial penalties. As a result, some respondents did not feel HMRC was motivated to accelerate query resolution.
For individuals, the primary need from contact was reassurance that they had taken appropriate steps to resolve their query and that HMRC was aware of this, and that their query was being progressed. In effect, they required reassurance and expected empathy and ownership from HMRC.
Small businesses’ primary requirements were for clarity, reassurance and burden minimisation, so that they could focus on running their businesses.
Agents wanted to be able to advise their clients accurately about their tax position and about how long it would take for queries to be resolved. Given that agents’ queries typically related to their clients, timeliness, record keeping and communication of process for resolution were critical.
Agents felt that clarity with regards to HMRC processes and timescales as well as improved self-serve options would increase their satisfaction with time taken. They also had clear expectations for how they should be treated: they should be recognised as professionals trying to do their jobs and not be patronised. agents required control and expected a high level of clarity, professionalism and knowledge.
According to HMRC’s customer survey conducted between September and November 2015, almost half (46%) of agents, nearly a quarter (23%) of individuals and 16% of small businesses said they were unhappy about how long it took them to get answers to queries they raised.
Following these findings, HMRC asked Kantor Public to carry out qualitative research with 50 of the respondents who had participated, and the consultancy did telephone interviews with 20 Individuals, 15 small businesses and 15 agents in the summer of 2016.
Report by Pat Sweet
