HMRC’s Scrooge-like Plan to Save Money: No More Letters About Your Refunds

By Graham | December 9, 2023

HMRC has axed the practice of sending out letters informing taxpayers of their self-assessment repayments, citing the practice as causing unnecessary confusion and increased customer queries. This change, effective from December 7, 2023, applies to all Bacs self-assessment repayments, affecting both tax advisers and individual taxpayers.

Instead of traditional letters, HMRC will now resort to digital confirmations for these repayment notifications. However, due to ongoing IT system updates, these digital notifications will commence at a later stage.

In a statement addressed to accountants and tax advisers, HMRC clarified that the change will not alter the repayment process itself. Taxpayers will still receive their refunds through their bank accounts as usual. The move to eliminate letters is primarily aimed at streamlining processes and minimizing customer confusion.

HMRC acknowledges that the volume of inquiries regarding repayments has been on the rise, leading to increased pressure on call centres. By eliminating letter notifications, HMRC hopes to alleviate this pressure while also saving costs associated with letter production and postage.

Accountants and individual taxpayers will still maintain access to repayment transaction information through HMRC’s online services. Agents can view transactions for their clients within their agent accounts, while individuals can access their HMRC online account to review transactions and opt for digital notifications, albeit temporarily suspended at present.

The cessation of repayment letters comes amidst HMRC’s substantial curtailment of self-assessment helplines ahead of the tax return season. This move will see HMRC call handlers solely handling the most intricate inquiries, while all callers will be greeted with a message directing them to HMRC’s website for self-servicing their queries. Mobile callers will also receive a text message guiding them to the relevant information.

This reduction in helplines will also impact accountants, with the dedicated agent line handling only the most complex queries during the self-assessment season. Additionally, HMRC call handlers will not address any PAYE-related questions until February.

Accountancy bodies have expressed concerns over these changes, attributing them to a critical resource scarcity at HMRC, which has witnessed a series of service cuts in recent months.

John Barnett, chair of CIOT’s technical policy and oversight committee, stated: “We are worried that many taxpayers will be unable to navigate HMRC’s digital services and will simply give up. Previous trials to limit calls to complex queries or divert people to online services have yielded inconclusive or troublesome results.”