ICAEW said that the decision to cut the service level agreement on the agent dedicated line (ADL) suggests it is failing to manage the tax system effectively and efficiently.

It is calling for HMRC to urgently publish a plan setting out improvements to its services and to be held accountable for making changes.

Although waiting times were usually in excess of 10 minutes on the ADL – generally 30 minutes or more – the move demonstrated that a thorough review into HMRC’s resources and capabilities was needed to determine whether it can operate effectively and to develop improved digital services for the future.

 The latest announcement provides further evidence of a continued decline in HMRC’s performance, ICAEW said, and comes after years of performance falling below expected standards, with little sign of any improvement likely in the near future.