HMRC complaints hit five-year high as 93,589 grievances lodged and average payouts fall to £125.27

Service data released by HMRC this month confirmed the department failed to meet its own performance targets for telephone response times, postal correspondence and overall customer satisfaction during the nine months to December 2025.

The National Audit Office has previously criticised the tax authority’s customer service standards, linking deteriorating performance to funding pressures, staffing reductions and a strategic shift towards online self-service systems.

Alongside the rise in complaints, the number of cases resulting in compensation payments also increased over the same period.

Financial redress was awarded in 15,304 cases during 2024-25, compared with 11,333 instances five years earlier.

However, the average sum paid to affected taxpayers fell to £125.27 in 2024-25, the lowest level across the five-year period examined.

HMRC’S own service dashboard indicates continuing backlogs in several areas, including marriage allowance applications, employment and pension tax refunds, self-assessment repayments and penalty appeals.

The Freedom of Information requests were submitted by the Contentious Tax Group, a network of accountants, solicitors and tax dispute specialists focused on enforcement matters involving the department.

Andrew Park, partner at accountancy firm Price Bailey, said: "Every year thousands of people suffer financial loss, wasted time and needless distress because HMRC struggles to deliver the basics."

He added: "HMRC is pushing taxpayers towards digital systems that are not yet ready, while withdrawing the human support people still need.

"This is a combination that risks compounding operational difficulties and driving complaints even higher."

Frank Haskew, head of taxation strategy at the Institute of Chartered Accountants in England and Wales, said: "When repayments are not being processed, that can cause real hardship for taxpayers."

Mr Haskew noted that while the department had made progress towards certain performance targets, concerns remained among taxpayers and professional advisers regarding postal delays and repayment processing times.

Emma Rawson, director of public policy at the Association of Taxation Technicians, described the volume of complaints as "sadly unsurprising" given ongoing service challenges.

She said: "Making a formal complaint will often be a last resort option, and many cases will only come at the end of a protracted attempt to resolve issues through the usual routes."

In March 2024, HMRC reversed plans to significantly reduce its telephone helplines following opposition from professional bodies.

A spokesperson for the tax authority said complaint levels have since begun to fall and that service standards are improving.

The department stated that average telephone waiting times are now below 14 minutes and confirmed £500million is being invested in digital services.