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Making HMRC pay for poor service

Dealing with HM Revenue & Customs (HMRC) can sometimes be challenging. Long wait times when phoning for help, incorrect refund amounts, errors in tax codes and other issues can cause frustration. In recent months and years the decline in service standard from HMRC has been notable, but did you know that it is possible to complain about HMRC and even receive compensation?


What are your rights?


HMRC has a Charter that outlines the standards of service you should expect to receive from them. They promise to get things right, make things easy, be responsive, treat you fairly, be aware of your personal situation, respect your wish to have someone else deal with them on your behalf, and keep your data secure. (https://www.gov.uk/government/publications/hmrc-charter/the-hmrc-charter)


If you can understand these rights it will help you to more clearly articulate how HMRC may have fallen short.


Keep everything documented


It is best to keep a detailed record of all your interactions with HMRC. Note down the dates, times, and names of any HMRC representatives you deal with as well as the substance of any conversation you have with them.
Letters, emails and other documents they send you should also be kept as they will support your case.


Contact HMRC


Start by contacting HMRC directly to try and resolve your issue. This can be done by calling their customer service or using their online services. Explain the problem clearly and provide any relevant details. If they don’t resolve the issue to your satisfaction, then you can ask to escalate the complaint.


Submit a formal complaint


To do this you can either write a letter or fill out the complaint form that is available on the HMRC website. You should attach any relevant information or evidence that supports your claim.


Be clear on what outcome you are looking for. Tell them whether you want an apology, for them to correct an error or compensation.


Seek compensation


If you have lost out financially because of HMRC’s error or poor service, then you can request compensation. Specify the amount you want and justify why you believe you deserve it.


Compensation can cover costs such as professional fees that you’ve had to pay to resolve the issue, or it could be interest on money that is owed to you.


Further steps


If necessary your complaint can be escalated to the Adjudicator’s Office, who will make an independent investigation, or even your Member of Parliament (MP).


Tips to improve your chances


-Be clear and concise: Clearly outline your complaint and the resolution you seek. Avoid unnecessary details that can cloud the main issues.
 

-Stay calm and professional: While it can be frustrating dealing with bureaucratic processes, staying calm and professional can help your case be taken more seriously.
 

-Follow up: Don’t hesitate to follow up if you don’t receive a timely response. Persistence often pays.
 

-Know your deadlines: Be aware of any time limits for filing complaints or seeking compensation.


Following these steps and being well-prepared, you can increase your chances of resolving issues with HMRC and receiving any compensation due.


As your tax advisers we do our best to make sure that HMRC fulfil their end of the Charter when dealing with you, but when things go wrong, we can also help you complain and perhaps receive compensation. Just speak to us about this and we would be happy to help you.

July 25, 2024