Complaints about HMRC surge to five-year high as redress payments rise

"HMRC is being forced to accept that an ever-increasing number of taxpayers are suffering worry and distress due to its action or inaction. Every year thousands of people suffer financial loss, wasted time and needless distress because HMRC struggles to deliver the basics."

"New figures obtained under the Freedom of Information Act by the Contentious Tax Group show that HMRC received 93,589 complaints in the 2024/25 tax year, up from 78,542 in 2020/21, a rise of 19.2 per cent over five years."

"Professional advisers say operational failings, including incorrect tax coding notices, misapplied adjustments and processing backlogs, are fuelling a cycle of error and complaint. The data suggests mounting frustration among taxpayers and advisers at a time when the tax authority has faced sustained criticism over service standards, processing delays and limited access to support."

HMRC received 93,589 complaints in the 2024/25 tax year, representing a 19.2% increase from 78,542 in 2020/21. Compensation payments rose significantly by 35%, from 11,333 to 15,304 cases, with the proportion of complaints resulting in compensation climbing to 16.4%, the highest level in five years. Professional advisers attribute the surge to operational failings including incorrect tax coding notices, misapplied adjustments, and processing backlogs. Telephone response times have deteriorated to all-time lows, reflecting broader service quality concerns. Tax professionals report that taxpayers and advisers face mounting frustration due to sustained criticism over service standards, processing delays, and limited access to support.

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