08 Dec HMRC’s system failure ahead of self-assessment deadline highlights need to become more tax aware
HM Revenue & Customs (HMRC) has closed its phone lines and some online services without further notice following technical issues, leaving Brits with urgent queries about their tax returns in limbo. This has consequently coincided with the busiest time of year, as tens of thousands of Brits begin their seasonal jobs in the lead up to Christmas, with many others preparing to submit their tax returns ahead of the self-assessment deadline on January 31. With over 340,000 Brits using the HMRC app to access employment and income information since July and over three million calls made to the Revenue throughout the year, HMRC’s system failures are set to affect the 12 million people filing for self-assessment in the next month. Following a series of significant changes to tax rules in the last six months alone, Tommy Mcnally, leading tax expert and CEO of Tommys Tax, discusses the critical need for more Brits to become educated about the tax process amidst one of the worst living squeezes seen on record.
A recent study from Tommys Tax found that 50% of Brits admit that the cost-of-living crisis is severely crippling their personal finances and are in desperate need for any form of refund in the current climate. With millions of households being forced to tighten their purse strings in the face of soaring living, energy and mortgage costs, Tommy asserts that not enough support is provided to CIS, PAYE and self-employed workers in the UK, who are likely to be the ones most affected by the recent technical blackout. With recent reports revealing that Brits are set to fork out an extra £1,800 in rising costs by next year, it is clear that improving tax literacy could provide taxpayers with the means to access their returns without any further delays. Amidst the cost-of-living crisis, this could prove to be a critical lifeline for those struggling to make ends meet – Tommy emphasises that it is more important than ever for taxpayers to remain aware of the new tax regulations, so that they are aware of the correct amounts they should be paying.
There is a clear gap in tax knowledge and the returns process, with further research from Tommys Tax finding that over a third of Brits (36%) say that tax is one topic in life they understand the least, while just over a quarter (26%) of the population haven’t even begun to think about their tax bill. This is set to widen in light of HMRC’s system failures, with data already revealing that callers with tax queries are now waiting four times as long to get through to the Exchequer compared to five years ago.
Tommy Mcnally, CEO of Tommys Tax, explains why this is a critical period for Brits to become more educated about the tax process:
“The continuous changes to the tax system – from September’s disastrous mini-Budget to the Autumn Statement – have caused wait times to soar when contacting HMRC at a time when many have questions about the process ahead of the January deadline.
“The issue is that there still is a huge knowledge gap when it comes to the tax process, and our research highlights this. With around £20 billion of unclaimed tax left on the table every year, a majority of taxpayers will be looking for rebates as an urgent lifeline to alleviate their financial strain – meaning that it’s more important than ever to stay well-informed in relation to the entire process and what this means for your taxes.
“That is why we’re here to help with the entire process for workers across the country. One of the ways we help is by educating customers about the various tax rebates that people are eligible for, but don’t make use of and that is where we’re here to help. Taxes can be boring, confusing and anxiety-inducing, but if done right could make a real difference to people’s lives.”
