HMRC to temporarily shut down self-assessment helpline

From the start of this week (12^th June 2023), HMRC closed their telephone self-assessment helpline for the next three months.

According to HMRC, the reason behind the temporary shutdown is because it will then free up 350 full time equivalent advisers to take urgent calls on other lines and answer correspondence.

It says that in the meantime, taxpayers can use its digital services instead.

There are concerns that this will impact low-income taxpayers in particular, as they won’t be able to afford professional advice.

Echoing these concerns, Victoria Todd, Head of the Low Incomes Tax Reform Group (LITRG), said, “The sudden closure of the self-assessment helpline is extremely disappointing and ill-thought-out and will have a disproportionate effect on low income taxpayers who cannot afford professional advice and rely on HMRC to help them get their tax right.

“Just last month, HMRC were actively encouraging taxpayers to file their tax returns early. Now, they are making the process even more difficult by cutting off a vital source of support for unrepresented taxpayers.

“Assuming demand is similar to last year, around 1 million taxpayers will now need to look elsewhere for help. This will most likely lead to increased demand for other HMRC services such as webchat, post or other phone helplines that are already under pressure.

“Although full details are not available about how those who need extra support will access the relevant team, we have concerns about the processes in place.”

Victoria added, “The decision may also drive people towards the voluntary sector for help, but these bodies are already dealing with their own funding pressures and may be unable to cope with a sudden increase in demand for help.

“Perhaps most worrying is the chance that people will decide not to seek any help or turn towards unofficial sources such as online forums, increasing the risk that they will receive inaccurate advice or no advice at all. This would lead to errors, non-compliance and more problems for HMRC and taxpayers alike further down the line. We are also concerned that more unscrupulous commercial service providers may try and exploit the situation.

“Actions like this are not the answer, they simply store up problems for the future. What HMRC really need are the resources they require to do their job adequately and effectively. This is another example that shows this is not the case at present”.

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