HMRC has made improvements to the way in which it handles complaints, but needs to make more effort to ensure the changes are applied consistently across the board, according to the annual report from the Adjudicator’s Office, which is also critical of the department’s culture
The Adjudicator’s Office investigates unresolved complaints relating to both HMRC and the Valuation Office Agency (VOA). Last year 967 complaints were escalated, a 15% decrease on the previous year.
The largest proportion of complaints were about HMRC tax credits, although this has reduced and is no longer as marked as in previous years. The number of complaints referred to the Adjudicator about the VOA remain low.
Of the total, 943 complaints related to HMRC, fewer than the 1,111 received in 2016-17. Of these, the office resolved 1,181, upholding 39% either partially or substantially. This compares with 41% upheld in 2016-17, and the report notes this rate has been steadily reducing from a high of 85% in 2014-15. The department paid £576,562 in redress to taxpayers.
Approximately 57% of the HMRC customer complaints referred to the Adjudicator were from tax credits customers about tax credits, where the upheld rate was 46.6%. The report said the fall in complaints about tax credits followed on from representations made by the Adjudicator last year to HMRC about the way in which staff were applying the ‘notional entitlement’ guidelines in cases where people had not filled in their claim correctly.
It stated: ‘HMRC appear to be applying notional entitlement as intended since we no longer see cases in which their application of it causes concern. This is a good result for HMRC and shows that the evidence we supply to them about the impact they have on their customers can bring about improved customer service.’
This year, the office has raised queries with HMRC about incorrect application of ESC A19 on the resolution of complaints for customers in self assessment, and worked with HMRC’s process design team to redesign the guidance their staff use, in order to make the intent and application clearer and more consistent.
The report stated: ‘HMRC’s engagement on this is a welcome change and is an illustration of an increasing appetite by them to take on feedback and make positive changes to improve customer service. We encourage them to continue to consider matters in this way, rather than using upheld/not upheld outcomes to determine levels of success.’
However, the report also notes that despite signs of a continued focus on improving complaint handling in the department, ‘in practice the benefits and principles of good complaint handling and learning are not fully understood throughout.’
Helen Megarry, the Adjudicator, said: ‘Although there are business areas demonstrating consistent improvement and evidence of good practice, more needs to be done to consolidate that across the board. Anyone accessing any part of the complaint process should be able to expect a similar level of service, focussed on putting things right when they have gone wrong. That is not currently always the case.’
She added: ‘I continue to raise the importance of organisational culture in both sustaining effective complaint handling and learning from customer feedback. We consistently see elements of HMRC’s culture impacting on their initial interaction with customers, their complaint handling and the action taken on feedback.’
The Adjudicator has signed a new service level agreement with HMRC and the VOA, setting out the terms of its role and remit as well as the specific extent of the independence of the office and the Adjudicator.
Adjudicator’s annual report is here.
Report by Pat Sweet
