At a glance
- HMRC’s phone service is failing, with low satisfaction and many dropped calls.
- A £500m investment will fund a new, integrated telephony and eCRM system.
- The new system will use AI, offer call-backs, and better route enquiries.
- But security risks and project delivery remain significant concerns.
HMRC’s recent telephone communications record is not sparkling. Its 2025 annual report notes that less than half (47.5%) of customers are satisfied with HMRC’s phone contact. That’s no wonder. In 2024, 44,000 calls were cut off without explanation – some after customers had waited up to 70 minutes to speak to an adviser.
HMRC’s CEO, John-Paul Marks, plans to spend £500m between now and 2033 to clean up HMRC’s phone communications act. The plan calls for a new integrated Electronic Customer Relationship Management (eCRM) and digital telephony system. An HMRC spokesperson says this will allow it to “deliver a more responsive and personalised service, both over the phone and through digital channels”.
Half a billion pounds on the table, a massive new IT system to be built, and a heavy dash of customer frustration – that’s quite the cocktail.
A service in need of saving
HMRC’s annual report included a survey of its Charter Stakeholder Group, of which the IFA is a member. This survey revealed that members felt that HMRC was “slow to respond to both written and telephone submissions”.
Worse still, some respondents reported that HMRC’s attitude towards taxpayers and their representatives could be dismissive and unprofessional, with phone calls cut off abruptly and no real mechanism for escalating issues.
“We have agent lines which supposedly help us get through quickly but it still takes us an hour. For an individual, you can triple that.”
– Paislei Godley
Prime Accountants Group’s associate director, Paislei Godley, says she has experienced some “shocking” examples of customer service when calling on behalf of customers. “We have agent lines which supposedly help us get through quickly but it still takes us an hour. For an individual, you can triple that.” She adds: “It is very hard to speak to someone at HMRC to answer queries or get a response to an appeal.”
Godley gives the example of one issue that was still unresolved four months after her first chase. “After we raised a dispute, it was resolved in 24 hours,” she adds. “It shouldn’t be like that, but it just takes someone pulling rank in the dispute resolution team.”
Technology in telephony
Clearly, an overhaul can’t come soon enough.
HMRC says its new Contact Centre as a Service (CCaaS) platform will use Artificial Intelligence (AI) to simplify existing telephone processes. It will also offer features like call-back options and updates on queue position and waiting times.
The new system will provide the data and tools needed to manage its workforce more effectively, HMRC says. That will let it handle both expected and unexpected peaks in demand.
The platform will also make it easier for agents and taxpayers to get through to the right team. The system will use technologies like Interactive Voice Response (IVR) to route enquiries more efficiently. This should help to cut waiting times and improve the customer experience.
When it comes to AI, Godley says that one of the biggest hurdles HMRC will face is security. HMRC’s ability to spot fakes will be crucial, she believes. “When you consider HMRC doesn’t currently use 2-factor authentication on agent accounts, there is a security risk here.”
Cyber security should be a serious consideration, since the news broke in June that scammers stole £47m from HMRC in a phishing attack. The HMRC spokesperson noted: “All AI use affecting customers requires explainable results, human oversight, and compliance with data protection and ethical standards.”
Digital first, but telephone remains vital
HMRC says it’s investing in these updates now because multiple contracts for contact centre support are due to expire within the next 24 months. That offers HMRC an opportunity to consolidate its telephony products into a single CCaaS solution.
It follows a rather unflattering report from Parliament’s Public Accounts Committee (PAC). It voiced concerns that HMRC has deliberately degraded its telephone service to drive customers to its digital channels.
HMRC has made it clear that a key priority is moving customers to (cheaper) online support; by 2029/30, it aims to make 90% of all interactions with taxpayers and agents digital.
Despite this emphasis on its “‘digital-first strategy”, HMRC’s spokesperson agrees that online channels are not appropriate for everyone. “Some customers will want, or need, to speak to us because their health or other circumstances makes it difficult to manage their tax affairs online,” they say.
Many taxpayers and agents still depend on telephone calls, with HMRC receiving 33.5 million calls in 2024/25. Maintaining the option to call – and significantly improving the experience – remains very important for its customers.
A welcome change – if it works out
The HMRC spokesperson admits that transferring from legacy systems to the new platform will take time and that a precise timeline has yet to be confirmed. They add, however, that HMRC is “confident we have the investment and ambition we need to realise its potential, supported by the right skills and capabilities we are procuring”.
The new system marks an important step for HMRC in improving how it handles customer calls and online enquiries. So far, the plans have been well received.
But their ultimate success will depend on HMRC’s ability to deliver the changes on time and make real improvements to its services.
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