Is It Worth Filing a Formal Complaint with HMRC?
Lately, HMRC hasn’t been enjoying the best reputation. Long waits for tax refunds, delayed responses to letters, and hour-long phone queues have left many of HMRC’s ‘customers’ frustrated. If you’re one of these customers, you might be wondering if it’s worth filing a formal complaint. Let’s explore the process and what you can expect.
When to Consider Making a Formal Complaint
Filing a complaint with HMRC might be justified if you face any of the following issues:
- Incorrect Tax Calculation: If HMRC has made errors in your tax calculation despite having all the necessary information.
- Unfair Treatment: Experiencing disrespect, undue delays, or misinformation from HMRC staff.
- Poor Service: Long delays in processing tax returns or responses to queries, lost documents, or lack of clear communication.
- Unresolved Errors: Mistakes made by HMRC that haven’t been corrected after being reported.
How to Complain
The process for lodging an HMRC-related complaint has four potential stages:
Tier 1 – Initial Complaint:
Start your complaint online or through your initial point of contact at HMRC. The goal is to respond within 15 working days, though complex issues may take longer. HMRC will provide contact details for the officer handling your complaint and keep you updated.
Tier 2 – Review:
If you’re among the 7% of taxpayers dissatisfied with the Tier 1 response, a second person will review your complaint afresh at Tier 2.
Adjudicator’s Office:
According to HMRC’s response to the Adjudicator’s Office 2023 annual report, over 98% of complaints are resolved internally through the first two tiers. If you’re still unhappy, you can escalate to the independent Adjudicator’s Office within six months of the Tier 2 review. The Adjudicator’s Office reviews whether HMRC handled your complaint appropriately and made a reasonable decision. They can only rule on specific complaints such as:
- Mistakes
- Unreasonable delays
- Poor or misleading advice
- Inappropriate staff behaviour
- Use of discretion
Parliamentary and Health Service Ombudsman (PHSO):
This is the final stage if you remain unsatisfied with the Adjudicator’s decision. You must usually raise the complaint within a year of first being aware of the problem, and it must be made via your MP.
Practical Considerations
A recent ‘freedom of information’ enquiry revealed that 35,000 HMRC customers complained about delays in 2022/23, with 4,742 receiving compensation. This gives roughly a one-in-eight chance of compensation, with an average payout of £150. These figures suggest that unless you’re driven by principle—such as challenging unfair treatment or ensuring accountability—a formal complaint may not be worth the effort purely for compensation.
Need Help with HMRC Issues?
If you’re facing challenges with HMRC and considering a formal complaint, Jon Davies Accountants can provide expert guidance and support. Contact Jon and the team for personalised advice and assistance.
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Any questions?
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