HMRC urged to commission research into customer service effect on tax take

Tax experts are urging HMRC to carry out research measuring how customer service investment boosts the UK’s tax take.

Earlier this year, a report highlighted a number of issues faced by HMRC customers, which has led to calls for improvement of the service. Our Calls to improve HMRC’s customer service news story will give you more information on this.

Now, following the Treasury’s Spending Review 2025, the Chartered Institute of Taxation (CIOT) is welcoming the decision to extend extra funding for customer services until April 2026 but recognises that it is difficult to measure the impact that it has on levels of tax compliance.

Richard Wild, CIOT Head of Tax Technical, explained, “Our evidence suggests that better HMRC customer service will deliver better returns for the government and stronger economic productivity.

“But unlike compliance activity, it is harder to quantify the specific impact that every pound invested in customer service has on the amount of tax that is collected.

“The Spending Review is an opportunity to allocate funding to research and measure the rate of return on this investment.

“Approximately 95% of the revenues collected by HMRC is paid voluntarily. It’s time to see this investment in HMRC customer service as a benefit rather than an ongoing cost.

“A significant level of demand for HMRC customer service is driven by HMRC themselves, because of low resolution rates, slow progress or lost correspondence.

“The report’s recommendations are practical suggestions which can deliver significant improvements for agents and taxpayers. We look forward to working with HMRC and the government to take forward our proposals in their work to improve customer service.”

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