How to get help with your tax return as HMRC halts plans to close helpline

The planned closure of the HM Revenue and Customs (HMRC) self-assessment tax return helpline has been halted, following criticism from charities and business groups.

It had been reported that taxpayers who need help filling out their forms would have to use HMRC’s online services from 8 April until the beginning of October every year, in a move designed to encourage more people to use online services.

But the move drew criticism from the Treasury Select Committee, who said online services should not be “forced on taxpayers”. Its chairwoman said the HMRC has not yet demonstrated that the department or the public “are ready to make such a monumental change to how they resolve tax issues”.

Support groups for the elderly also said that it would put older people at risk of penalties because of their potential struggle with using online services instead of speaking to someone on the phone. Business groups also hit out at the move, arguing that the “complicated” tax system meant customers would not be able to have their queries resolved by a digital assistant.

HMRC chief executive Jim Harra has now confirmed that they are now “halting” the plans after “listening to the feedback”. He said: “Our helpline and webchat advisers will always be there for those taxpayers who need support because they are vulnerable, digitally excluded or have complex affairs. However, the pace of this change needs to match the public appetite for managing their tax affairs online.

“We’ve listened to the feedback and we’re halting the helpline changes as we recognise more needs to be done to ensure all taxpayers’ needs are met, whilst also encouraging them to transition to online services.”

What is HMRC’s chatbot and how can it help?

Instead of speaking to an actual human, customers can find help with their tax queries from a digital chat assistant. This ‘chatbot’ responds to questions by offering advice or directing customers to the relevant sections on the HMRC website through automated responses.

The help offered by the chatbot includes links to videos or how-to guides for help with filling out and filing tax returns. The set-up is similar to typical text message threads on smartphones. The chatbot can be used without having to sign in to an account first.

HMRC said that many queries – such as resetting passwords or finding out national insurance numbers – could be done online rather than speaking to a person. However, they said that people whose query is not dealt with by online guidance will still have access to an HMRC adviser through webchat.

Why are people criticising HMRC?

Charities and tax organisations have warned that elderly people may struggle with using online services – and may find themselves risking fines by not returning tax returns on time. Dennis Reed, the director of Silver Voices – an organisation set up to represent senior citizens in the UK – told MailOnline that there will be a drop in tax revenue “as people find it too difficult to report changes in circumstances”.

He added that older people who are now finding themselves subject to tax because of the personal allowances freeze will need advice. He warned: “If they are not online HMRC is saying, ‘get lost’.”

The chairwoman of the Treasury Select Committee, Harriett Baldwin, said HMRC were “essentially closing down any avenues for people to contact them over the phone for huge parts of the year” to help them with HMRC’s “incredibly complex website”. She added: “These are well-meaning people just trying to get their taxes right.”

Dawn Register, head of tax dispute resolution at advisory firm BDO, said that digital assistants and webchat facilities “only go so far”. She added: “The tax system is complicated, people’s financial affairs are complicated, and there are times when taxpayers simply need to speak to a human being to find out the answers to their questions.“

Tina McKenzie, policy chair at the Federation of Small Businesses (FSB), said: “This news will be greeted with dismay by thousands of small businesses. She warned that chatbots “are in many cases no substitute for talking to a real person, especially for complex or time-pressured issues”.

Yahoo News UK has contacted Age UK and Independent Age for a comment.

What have HMRC said?

Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, defended the use of online services, saying they “often provide a better service for managing tax”. She said that closing the phone lines allowed its advisers to “focus support where it is most needed”.

She said: “We must maximise every pound of taxpayers’ money. Embracing online self-service allows us to help more customers and improve our customer service levels without spending additional public money.”

HMRC said a previous trial enabled it to help more customers and did not affect self-assessment taxpayers’ ability to file or pay on time – with a record 11.5 million filing their return by January 31 2024. Self-assessment customers have 10 months to file their tax return and more than 97% file online, it added. The HMRC app is used by 1.2 million customers each month.

How to access HMRC’s online services

HMRC’s online services can be accessed via the official website. However, customers must have an account and be signed in to use them, unlike with the generic questions for the digital assistant.

The site allows customers to reset their password if they have forgotten or lost it. Details can be found on the ‘help with signing in’ page.

The VAT helpline will be open for five days every month ahead of the deadline for filing VAT returns. The PAYE helpline will no longer take calls from customers relating to refunds, and customers will be directed to use HMRC’s online services.

What services can be used with HMRC online?

Once signed in, customers can use their online accounts for:

• Alcohol and Tobacco Warehousing

• Alcohol Wholesaler Registration Scheme

• Annual Tax on Enveloped Dwellings

• Automatic Exchange of Information (AEOI)

• Business tax account

• Charities Online

• Construction Industry Scheme (CIS)

• Corporation Tax

• DIY housebuilder scheme

• Duty Deferment Electronic Statements (DDES)

• electronic Binding Tariff Information (eBTI)

• Employment Intermediaries

• Excise Movement and Control System (EMCS)

• Fulfilment House Due Diligence Scheme

• Gambling Tax Service

• Gift Aid

• Import Control System (ICS)

• Machine Games Duty

• Making Tax Digital for Income Tax

• Managing Pension Schemes

• Money laundering supervision

• New Computerised Transit System (NCTS)

• New Export Scheme (NES)

• Notification of Vehicles Arrivals (NOVA)

• PAYE for employers

• Pensions Schemes Online

• Personal tax account

• Plastic Packaging Tax

• Rebated Oils Enquiry Service

• Self Assessment

• Self Assessment for partnerships and trusts

• Shared Workspace

• Soft Drinks Industry Levy

• Stamp Taxes

• Tied Oil Enquiry Service

• VAT

• VAT EU Refunds

• VAT Import One Stop Shop (IOSS) Scheme

• VAT Mini One Stop Shop (MOSS) Scheme

• VAT One Stop Shop (OSS) Scheme

Read more

• Filing your self-assessment tax return: everything you need to know (Eastern Daily Press)

• Warning of 'sophisticated' phishing attacks targeting tax returns - here's how to spot them (Yahoo News)

• Self-employment tax and HMRC penalties (Herald Scotland)