Summary 

Taxpayers and their agents have become increasingly frustrated at their inability to know the status of any submitted correspondence, return or claim being processed by HMRC. 

A digital tracking system similar to that operated by other government departments (such as HM Passport Office) would enable taxpayers and their agents to have comfort that their correspondence, return or claim has been received and monitor the progress in line with HMRC’s turnaround times. This might more easily be achieved using the secure electronic methods we are advocating for contact between HMRC and taxpayers and/or their agents, but could also be adapted for written contact where necessary. 

Detail 

Our members regularly share their experiences of delays with HMRC turning around correspondence, returns and claims submitted on behalf of their clients. When HMRC has not actioned the correspondence, return or claim within a reasonable timeframe, it is not known whether it is still being dealt with or has been ‘lost’ in the system. 

This then results in contact being made by frustrated taxpayers or their agents to HMRC to confirm whether correspondence, returns and claims have been received and when the necessary follow-up action will be taken by HMRC. Increased HMRC delays drive traffic to already struggling HMRC telephone helplines, resulting in longer waiting times to speak with an advisor, causing inefficiencies in the operation of the tax system. 

HMRC have attempted to reduce calls to progress chase by introducing the ‘Where’s my reply’ tool, but this talks about HMRC turnaround times generally rather than giving the ability to confirm the specific status of the progress on a particular issue. 

We would like to see a digital system introduced, such as that used by HM Passport Office when applying for a UK passport. In that case, the applicant is given an email acknowledgement with a reference number and follow up emails are then issued as the passport application progresses to the final issue of the passport. By having such a system, the vast majority of applicants for a UK passport do not need to contact HM Passport Office after submitting their application unless there is a problem. Whilst a HMRC service would need to operate slightly differently, a similar system could enable them to be more efficient and transparent about how they handle contact from taxpayers and their agents. 

For example, a HMRC progress tracking system could generate an email to acknowledge receipt at the outset, stating an indicative date for HMRC to respond. The taxpayer or their agent could then receive email updates as action is taken by HMRC and monitor via a HMRC portal such as the agent services account. 

Whilst ambitious, such a progress tracking system could enable HMRC to make significant improvements in customer service. Telephone lines would only need to be used by those taxpayers/agents with more complex matters as there would be no need to call HMRC to progress chase in most cases. 

That said, knowledge of the status of a particular matter needs to be accompanied by HMRC delivering on turnaround times. Where this does not happen, a tracking system could work alongside the personal tax query resolution service for agents or any similar initiatives, enabling agents to quote the reference given for the correspondence, return or claim after the specified period of time for HMRC to progress the action required. 

As a first step, we would suggest that the ability to progress track is built into any new HMRC systems by default, before moving on to look at existing systems.