HMRC: is self assessment tax contact number closing, VAT helpline changes, online options, when is it closing?

Changes that were due to be made to self assessment, VAT and PAYE helplines run by HM Revenue & Customs (HMRC) will be put on hold while it engages with stakeholders.

Yesterday (19 March), HMRC came under fire after announcing permanent changes, including the closure of the self-assessment helpline for a portion of the year.

HMRC said the proposed changes to the helpline services were designed to incentivise users to use the internet first, and had been successfully tested for the past year.

But the plans came under intense scrutiny from those who said the revenue body has not yet demonstrated that the department or the public “are ready to make such a monumental change to how they resolve tax issues”

The change were due to be made on 8 April, but have now been halted in response to the feedback while HMRC engages with its stakeholders about how to ensure all taxpayers’ needs – including small businesses – are met. Here is everything you need to know.

What's changing?

HMRC originally said the changes would mean that, between April and September, the self-assessment helpline will be closed and customers will be directed to self-serve through its online services.

Between October and March, the helpline was due to remain open to deal with priority calls, and customers with queries “that can be quickly and easily resolved” online would be directed to HMRC’s online services.

The VAT helpline would be open for five days every month ahead of the deadline for filing VAT returns. The PAYE helpline would no longer take calls from customers relating to refunds, and customers will be directed to use HMRC’s online services.

HMRC advisers would continue to always be available during normal office opening hours to support customers who cannot use online services or who have health or personal circumstances that mean they need extra support.

It added that all other helplines would continue to operate as they do currently.

Why have the plans been put on hold?

HMRC chief executive Jim Harra said: “Making best use of online services allows HMRC to help more taxpayers and get the most out of every pound of taxpayers’ money by boosting productivity.

“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.”

Why are the changes happening?

The revenue body said the move to online self-service for self-assessment and VAT is a vital element of HMRC’s modernisation of the tax system. It said customers can access information more quickly and easily by going online or to the HMRC app.

Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, said: “Online services have transformed our lives and often provide a better service for managing tax – they’re quicker, easier and always available.

“Changing our services to encourage customers to self-serve online wherever possible will allow our helpline advisers to focus support where it is most needed – helping those with complex tax queries and those who are vulnerable and need extra support."

HMRC said a previous trial enabled it to help more customers and did not affect self-assessment taxpayers’ ability to file or pay on time – with a record 11.5 million filing their return by January 31 2024.

Self-assessment customers have 10 months to file their tax return and more than 97% file online, it added. The HMRC app is used by 1.2 million customers each month.

As with the self-assessment trials, the impact of these changes on the self-assessment, VAT and PAYE helplines will be monitored and reviewed, HMRC said.

It added that, last year, HMRC received more than three million calls on queries that could easily and simply be done online – including resetting an online password, getting a tax code, and finding a national insurance number.

People whose query is not dealt with by online guidance will still have access to an HMRC adviser through webchat.

Why had the plans come under fire?

The chairwoman of the Treasury Select Committee, Harriett Baldwin, said the move to online services should not be “forced on taxpayers”.

She said the revenue body has not yet demonstrated that the department or the public “are ready to make such a monumental change to how they resolve tax issues”.

Baldwin 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. I say once again, these are well-meaning people just trying to get their taxes right.

Dawn Register, head of tax dispute resolution at advisory firm BDO, said: “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.

“Tax can be horribly stressful and our concern is that this decision will make being tax compliant more challenging for some people.

“It’s welcome that HMRC continues to modernise its systems as adding additional functionality to the HMRC app may help more taxpayers self-serve online, but it is essential that digitally excluded and vulnerable taxpayers can find out how to get HMRC support without using the app or going online.”