HMRC service levels and delays

HMRC service levels and delays
22 Nov 2021

You may well have encountered delays with HMRC over the past year when it comes to responding to requests such as for No Tax (“NT”) codes, pre-clearance on termination payments and other payroll-related requests.  

In the past week, HMRC has acknowledged these difficulties and have provided some specific commentary. Whilst this acknowledgement by HMRC will not necessarily help those awaiting a response from HMRC, it will at least provide some explanation as to the delays and enable employers to manage compliance, as well as employee expectations.  

Where delays have been excessive and particularly where they are impacting employees (e.g. delays are causing hardship because you can’t make a payment) you should consider complaining to HMRC. Details on this are included below.  

Global mobility tax delays 

HMRC acknowledged specific delays when it comes to processing Section 690 directions for the pro-ration of PAYE in relevant expatriate cases, processing Form P85 for employees leaving the UK, issuing No Tax (“NT”) codes to employers and also issuing Unique Tax Reference (“UTR”) numbers to expatriates filing tax returns for the first time.  

HMRC have indicated that they have put a plan in place to clear the backlog, including securing additional resources. Hopefully, any requests outstanding to date will be cleared by the end of this year.  

Wider HMRC processing issues 

It is clear that delays and service delivery issues are not solely restricted to global mobility tax. Earlier last week, HMRC provided a statement to the Chartered Institute of Taxation on the reasons for delays more widely across all taxes: 

“Like most service organisations - even those without additional services to deliver like the Government COVID support schemes and Brexit - we’ve spent the past few months recovering and rebalancing our services as society and the economy begins to normalise. 

“We are working through the stocks of post that built up over the past year, as we prioritised delivery of the government’s COVID-19 support packages and the UK’s smooth transition from the European Union alongside the essential services that keep the tax system running. We are now beginning to see steady reductions in most of these stocks, and these reductions will continue in the coming months. 

“We understand the frustrations of customers and agents who are waiting for us to get to their individual enquiry, and we are sorry that we can’t get to everyone more quickly. In addressing our work queues, we’ve been prioritising our efforts where we can protect livelihoods and put money in the pockets of our customer groups in greatest need.” 

Complaining to HMRC 

If you continue to encounter excessive delays (i.e. waiting for more than a couple of months for a response from HMRC on any matter), then you may wish to consider drafting a letter of complaint to HMRC. Ideally, you should reference The HMRC charter and state clearly, with evidence if possible, how HMRC have fallen short; with the standards of the charter in mind.


Author: Lee McIntyre-Hamilton

Lee has over 23 years of experience in international mobility, expatriate tax and employment tax. He works with a diverse range of international organisations, from small owner-managed businesses to large multi-national corporations and non-profit organisations.  Lee delivers coordinated, joined-up global mobility tax, international social security and payroll advice across many territories globally. He is a published writer on international tax matters, notably the Tiley & Collinson UK Tax Guide.


Contact Lee:  lee@globalpayrollassociation.com

 


 

 

 

 

You may well have encountered delays with HMRC over the past year when it comes to responding to requests such as for No Tax (“NT”) codes, pre-clearance on termination payments and other payroll-related requests.  

In the past week, HMRC has acknowledged these difficulties and have provided some specific commentary. Whilst this acknowledgement by HMRC will not necessarily help those awaiting a response from HMRC, it will at least provide some explanation as to the delays and enable employers to manage compliance, as well as employee expectations.  

Where delays have been excessive and particularly where they are impacting employees (e.g. delays are causing hardship because you can’t make a payment) you should consider complaining to HMRC. Details on this are included below.  

Global mobility tax delays 

HMRC acknowledged specific delays when it comes to processing Section 690 directions for the pro-ration of PAYE in relevant expatriate cases, processing Form P85 for employees leaving the UK, issuing No Tax (“NT”) codes to employers and also issuing Unique Tax Reference (“UTR”) numbers to expatriates filing tax returns for the first time.  

HMRC have indicated that they have put a plan in place to clear the backlog, including securing additional resources. Hopefully, any requests outstanding to date will be cleared by the end of this year.  

Wider HMRC processing issues 

It is clear that delays and service delivery issues are not solely restricted to global mobility tax. Earlier last week, HMRC provided a statement to the Chartered Institute of Taxation on the reasons for delays more widely across all taxes: 

“Like most service organisations - even those without additional services to deliver like the Government COVID support schemes and Brexit - we’ve spent the past few months recovering and rebalancing our services as society and the economy begins to normalise. 

“We are working through the stocks of post that built up over the past year, as we prioritised delivery of the government’s COVID-19 support packages and the UK’s smooth transition from the European Union alongside the essential services that keep the tax system running. We are now beginning to see steady reductions in most of these stocks, and these reductions will continue in the coming months. 

“We understand the frustrations of customers and agents who are waiting for us to get to their individual enquiry, and we are sorry that we can’t get to everyone more quickly. In addressing our work queues, we’ve been prioritising our efforts where we can protect livelihoods and put money in the pockets of our customer groups in greatest need.” 

Complaining to HMRC 

If you continue to encounter excessive delays (i.e. waiting for more than a couple of months for a response from HMRC on any matter), then you may wish to consider drafting a letter of complaint to HMRC. Ideally, you should reference The HMRC charter and state clearly, with evidence if possible, how HMRC have fallen short; with the standards of the charter in mind.


Author: Lee McIntyre-Hamilton

Lee has over 23 years of experience in international mobility, expatriate tax and employment tax. He works with a diverse range of international organisations, from small owner-managed businesses to large multi-national corporations and non-profit organisations.  Lee delivers coordinated, joined-up global mobility tax, international social security and payroll advice across many territories globally. He is a published writer on international tax matters, notably the Tiley & Collinson UK Tax Guide.


Contact Lee:  lee@globalpayrollassociation.com

 


 

 

 

 

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