HMRC Customer Service: Why the Taxman is Drawing Comparisons to the DVLA's Worst Days

For many in the UK, interacting with government agencies can be a test of patience, and recent reports suggest that HM Revenue & Customs (HMRC) is increasingly failing that test. A recent headline in The Telegraph declared that "HMRC is giving customers the worst service since the DVLA," drawing a stark and unwelcome comparison to another public body notoriously plagued by customer service woes.

This article delves into the persistent issues plaguing HMRC's customer service in 2025, exploring the reasons behind the public's growing frustration and the uncomfortable parallels being drawn with past challenges at the Driver and Vehicle Licensing Agency (DVLA).

The State of HMRC Customer Service in 2025

The criticism leveled at HMRC is not new, but it appears to be intensifying. Reports from parliamentary committees, professional bodies, and direct taxpayer accounts paint a consistent picture of deteriorating service levels:

• Excruciatingly Long Wait Times: Customers frequently report waiting over 20 minutes, and sometimes much longer, to speak to an HMRC advisor. There have been instances of calls being cut off after extended waits, leaving taxpayers frustrated and without resolution.
• Reduced Accessibility: Concerns have been raised that HMRC is deliberately degrading its phone services in an attempt to push more users towards digital channels. While digital services are often more efficient for simple tasks, not all services are available online, and many vulnerable individuals or those with complex queries require direct human interaction.
• Failure to Meet Targets: For years, HMRC has consistently fallen short of its own service standards for answering calls and responding to correspondence. In the past year (2024-2025), reports indicated that only around two-thirds of customer calls were being answered, far below their own targets.
• Delayed Refunds and Processing: Accountants and taxpayers have highlighted significant delays in processing tax refunds, particularly for PAYE and CIS, impacting businesses' cash flow. Other applications and inquiries also face extended processing times.
• Eroding Trust: The persistent difficulties in accessing assistance are leading to a decline in public trust in the tax system itself, with many feeling that an essential public service is simply not fit for purpose.

The DVLA Parallel: A Troubling Comparison

The comparison to the DVLA's past struggles is particularly stinging. The DVLA, responsible for driving licenses and vehicle registration, faced widespread criticism and significant backlogs, particularly during and after the pandemic, due to a combination of reduced staffing, increased demand, and reliance on paper-based processes.

The parallels between HMRC and the DVLA include:

• High Volume, Inadequate Resources: Both agencies handle an enormous volume of inquiries from a population that has no choice but to engage with them. Critics argue that both HMRC and the DVLA have been consistently under-resourced to meet this demand.
• Push for Digitalisation: Both bodies have pursued a "digital-first" strategy, aiming to move more transactions online. While this can improve efficiency for many, it often leaves behind those who struggle with digital interfaces or who have issues that cannot be resolved without human intervention.
• Impact on Citizens' Lives: Just as DVLA delays left individuals unable to drive, work, or even prove their identity, HMRC's service issues can cause significant financial distress, compliance errors, and immense stress for individuals and businesses trying to navigate their tax obligations.
• Parliamentary Scrutiny: Both agencies have faced repeated criticism and recommendations from parliamentary committees, notably the Public Accounts Committee (PAC), regarding their declining service standards.

Why are These Issues Persisting at HMRC?

Several factors contribute to HMRC's ongoing customer service challenges:

• Complex Tax System: The UK tax system is inherently complex, leading to a high volume of inquiries that require detailed guidance.
• Staffing Levels and Training: While HMRC states it has received additional funding to recruit more advisors for 2025-26, it's a long road to recovering from years of what many perceive as underinvestment in frontline staff.
• Outdated Systems: Despite efforts towards digitalisation, parts of HMRC's infrastructure are still grappling with older technology, particularly in their telephone platforms, which struggle to handle the sheer volume of calls.
• Industrial Action: Past industrial action by staff has also contributed to backlogs and service disruptions.
• Focus on Enforcement vs. Service: Some critics suggest that HMRC's strategic focus has leaned more towards compliance and debt collection rather than proactively improving customer service to help taxpayers get it right in the first place.

What is HMRC Doing to Address the Crisis?

HMRC acknowledges some of the issues and has outlined measures aimed at improvement:

• New Contact Service Platform: HMRC is procuring a new telephone contact service platform, expected to be in place by 2026-27, which promises features like accurate waiting time estimates, warnings about call cut-offs, and callback options.
• Increased Staffing: Additional funding has been secured to recruit more customer service advisors for 2025-26.
• Digital Enhancements: Continued efforts are being made to improve and expand online services, although concerns remain about their comprehensiveness and accessibility for all users.
• Learning from Feedback: HMRC claims to be undertaking "deep dives" into complaints and has reversed controversial plans to close some helplines in response to public outcry.

While these steps are welcome, the scale of the challenge is significant, and taxpayers will be looking for tangible improvements in the coming months and years.

Navigating HMRC: Tips for Taxpayers

Until service levels consistently improve, here are some tips for dealing with HMRC:

• Use Online Services Where Possible: For straightforward tasks like checking your tax code, updating details, or filing Self Assessment, digital channels are often the quickest.
• Check GOV.UK: The official government website has extensive guidance and can answer many common questions.
• Use Webchat: If available, webchat can sometimes offer a quicker way to get answers than waiting on the phone.
• Be Prepared for Calls: If you must call, ensure you have all relevant information (NI number, UTR, etc.) to hand. Call during off-peak hours if possible.
• Keep Records: Document all interactions with HMRC, including dates, times, names of advisors, and a summary of the conversation.
• Contact Your MP: If you have exhausted other avenues and are facing significant hardship due to HMRC delays, contacting your Member of Parliament can sometimes expedite a resolution.

The comparison of HMRC's current customer service to the DVLA's past struggles highlights a critical point: public services that are mandatory for citizens must aspire to the highest standards of efficiency and responsiveness. For HMRC, the journey to regaining public trust and delivering acceptable service levels appears to be an uphill battle, but one that is essential for the smooth functioning of the UK's tax system.