U-TURN
HMRC DITCHES controversial plans to shut down major phone line used by millions
We reveal below who uses the phone line
HMRC has U-turned on plans to close a major telephone line in just weeks.
The Government department announced yesterday it would be closing its self-assessment helpline from April 8 to September 30.
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The phone line was due to shut during the same time period each year moving forward.
It would have seen self-assessment customers forced into using HMRC's website or app to fulfil requests for six months of the year.
But the Government department has today U-turned on the announcement, saying it is ditching plans to close the line.
It comes after the move faced criticism from MPs and the BDO, a firm of tax advisers.
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Chancellor Jeremy Hunt also stepped in today, calling for the proposed closure of the phone line to be halted.
HMRC Chief Executive Jim Harra said: "Our helpline and webchat advisers will always be there for those taxpayers who need support because they are vulnerable, digitally excluded or have complex affairs.
“However the pace of this change needs to match the public appetite for managing their tax affairs online.
“We’ve listened to the feedback and we’re halting the helpline changes as we recognise more needs to be done to ensure all taxpayers’ needs are met, whilst also encouraging them to transition to online services."
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The changes announced by HMRC yesterday would also have seen the self-assessment helpline run a reduced service between October this year and March 2025.
HMRC said the helpline would be open to deal with only priority calls, and customers that had queries "that can be quickly and easily resolved" would be directed to HMRC's website and app.
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The Government department said its app was used by 1.2million customers each month.
It added more than 97% of self-assessment customers filed their tax return each year via the app.
But the proposed phone changes drew major criticism from politicians and tax specialists.
Harriett Baldwin, chair of the Treasury Select Committee, said: “It is a great shame that HMRC have decided now is the time to essentially close down any avenues for people to contact them over the phone for huge parts of the year.
"We’ve heard time and time again that every effort is being made to direct people to resolve issues online."
Meanwhile, tax specialists BDO also criticised HMRC's plans to close the phone line, which received three million calls last year.
Dawn Register, head of tax dispute resolution at the BDO, said: "While it’s right that every Government department looks for efficiency savings, HMRC is in a unique position in that if it doesn’t provide the level of service that its customers require, there is a risk that it will fail to collect the tax that’s due.
“Digital innovation is clearly a benefit to taxpayers, but online guidance, digital assistants and webchat facilities only go so far.
"The tax system is complicated, people’s financial affairs are complicated, and there are times when taxpayers simply need to speak to a human being to find out the answers to their questions."
Alice Haine, personal finance analyst at Bestinvest, welcomed the development announced by HMRC today.
She said: "The decision by HM Revenue and Customs (HMRC) to reverse a plan to close its self-assessment telephone helpline for six months will be welcomed by taxpayers who need to contact them and speak to someone.
"The quick U-turn will be a big relief for those that like to file their tax return early and may encounter glitches along the way, particularly those who are new to the process and prefer to talk to a human."
HMRC launched a trial closure of the self-assessment phone line last summer, between June 12 and September 3.
At the time, it said the trial would allow its staff to deal with 6,600 other calls per day.
The helpline receives far fewer calls over the summer, with calls around 50% higher between January and April compared with June to August, the revenue body previously said.
It's worth noting, despite HMRC halting plans to close its phone line over the summer, that doesn't mean it won't reintroduce them.
It may still introduce slightly different plans that could see the phone line offer a reduced service or closed for certain periods of the year.
Who uses the helpline?
Self-assessment is a system HMRC uses to collect income tax.
Tax is usually deducted automatically from wages, pensions and savings, but some people and businesses with other incomes havre to report it in a tax return.
This applies to the following:
- Earned more than £2,500 from renting out property
- You or your partner received high-income child benefits and either of you had an annual income of more than £50,000
- Received more than £2,500 in other untaxed income, for example from tips or commission
- Are self-employed sole traders
- Are limited company directors
- Are shareholders
- Are employees claiming expenses in excess of £2,500
- Have an annual income over £100,000
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How do I file a tax return?
TO file a self assessment tax retun, you'll need to register with HMRC first, which will then issue you with a Unique Taxpayer Reference (UTR).
You must register for self assessment by October 5 if you have to file a tax return and you have not sent one before.
You can do so by visiting www.gov.uk/register-for-self-assessment.
If you've previously registered and already have a UTR, you don't need to go through this step again.
Once you've got your UTR, you can sign in via the "Self Assessment tax return" section of HMRC's website by visiting www.gov.uk/log-in-file-self-assessment-tax-return.
You can then file your self assessment tax return online.
The deadline for sending a return online is January 31 every year.
If you need a paper copy of the main Self Assessment tax return, call HMRC on 03000 200 3610 and request an SA100 form.
The deadline for sending a return using a paper form is October 31 every year.
You need to pay the tax you owe by midnight on January 31 each year.
HMRC accepts your payment on the date you make it, not the date it reaches its account.
File late and HMRC will issue you with a fine.
If you're a self-assessment tax customer and want to know more on filing your self-assessment, HMRC's website has a manual explaining how to use it.
You can also get help from an accountant or tax adviser.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Facebook group to share your tips and stories.
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