HMRC has recorded its worst customer-service rating since its annual perception study began five years ago, with fewer than one in four taxpayers now saying the department offers a good service.
The survey, carried out for HMRC by Yonder Consulting and published on 28 May 2025, canvassed 3,013 adults across the UK. Only 24% agreed that HMRC “provides good customer service”, down from 28% in 2022. Almost half of respondents were neutral or unsure, indicating widespread ambivalence rather than outright hostility.
Overall favourability has followed a downward trend since the research began in 2020, when 42% viewed the department positively. In each subsequent year that share has shrunk, mirroring well-documented backlogs in the processing of self assessment returns and delays issuing tax refunds. On several occasions in 2024, HMRC advised agents to defer calls to its helplines, citing staffing constraints and seasonal peaks in demand.
Drop in favourability among helpline users
Telephone users were markedly more critical. Of those who had contacted HMRC by phone in the previous year, 47% rated the experience negatively. Repeated and well-publicised closures of helplines at peak times, along with average waiting times of more than 20 minutes during the self assessment rush, appear to have damaged perceptions.
Complexity amplifies dissatisfaction
Perceptions were closely linked to the complexity of respondents’ tax affairs. More taxpayers have been drawn into self assessment as a result of income tax and national insurance thresholds being frozen since April 2021. Among those who said their affairs had become more complex over the past year, only 17% felt HMRC provided good service, compared with 28% of those whose affairs were unchanged.
Other reputation metrics also slipped. The proportion describing HMRC as “reliable” fell to 36%, while just 29% rated the department highly on “trust” and 25% on “confidence”. Ease of dealing with the tax authority deteriorated too.
New leadership under pressure
The findings land on the desk of incoming Chief Executive and First Permanent Secretary John-Paul (JP) Marks, who succeeded Sir Jim Harra on 6 April 2025.
Digital transformation remains a flashpoint. While Making Tax Digital (MTD) for VAT is embedded, the income tax phase – scheduled for April 2026 – is drawing criticism. A Chartered Institute of Taxation (CIOT) survey suggests one in three sole traders are unaware of the new obligations, and HMRC’s pilot has enrolled only around 1,000 users.
In an open letter on 29 April 2025, the CIOT warned that agent functionality had been “scoped out” of early MTD designs, limiting accountants’ ability to support clients. The institute called for a clearer roadmap.
John Barnett, chair of the CIOT’s technical policy and oversight committee, said it was vital for HMRC to “set out how [it] plans to address the growing list of pain points in existing digital services”.
He added: “Whilst we appreciate HMRC have entered the ‘readiness’ phase of the MTD project, the fact that we are now unsighted on when and how these matters will be resolved limits our ability to encourage our members to ready themselves and their clients, or indeed provide ongoing feedback.”
Misunderstanding HMRC’s role
The perception study also highlighted confusion over HMRC’s responsibilities: two in five respondents wrongly believed the department sets tax rates. Researchers said clearer messaging could reduce anger directed at HMRC for political decisions such as threshold freezes.
When asked about priorities, only 18% said HMRC should focus mainly on collecting tax, while 26% were unsure. Against that backdrop, the department must pursue compliance without appearing unsympathetic to taxpayers facing a cost-of-living squeeze.
Looking ahead
With personal allowance freezes now extended to 2028, more people will become higher-rate taxpayers, adding pressure to HMRC’s systems. Practitioners warn that, unless service levels improve before the next survey, HMRC risks a further erosion of trust that could undermine voluntary compliance.
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