HMRC risks losing confidence through digital shift

19 Jul 2016

The National Audit Office (NAO) has said that HM Revenue & Customs (HMRC) risks losing the confidence of businesses and individuals after it overestimated the number of staff reductions made possible by the new digital systems.

In an effort to deliver “one of the most digitally advanced tax administrations in the world” HMRC began offering online tax accounts for individuals and businesses. This however has not been the success they had hoped for, as businesses have had to file with HMRC more frequently so have needed to update their software systems at great expense. With the reduced number of staff, HMRC has also been unable to meet the demand for telephone contact, causing a range of issues as reported previously in our article "HMRC accused of benefitting from “accidental overpayments” through digital tax filings".

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