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Government delays build for self assessment tax processing

It’s shaping up to be a summer of delays, with a property market backlog, staff shortages wreaking havoc across the nation’s airports and even severe delays building for those applying for passports and driving licence.

Tax refund experts, RIFT Tax Refunds, have also warned that the time it’s taking HMRC to process a number of tax related tasks, such as self assessment tax returns, is also being subject to some substantial delays.

HMRC’s efficiency data shows that the time taken for them to answer a call has increased by over one minute in the last year, while four in ten customers are waiting more than 10 mins for a call to be answered. At the same time, customer complaints have increased by 568 a year.

This drop in services standards hasn’t gone unnoticed and earlier this month, the ATT, CIOT, ICAEW and ICAS wrote a joint letter to HMRC voicing their concerns.

For those who have to complete self assessment forms, a process which can feel laborious even at the best of times, there are now even higher levels of frustration.

The process of registering for self assessment online is currently taking approximately nine weeks, up from two weeks previously. And whilst the issuing of self assessment refunds is currently taking just 14 days, it’s important to know that HMRC are currently selecting an increased number of taxpayers for security checks. When this happens, the refund process can take anywhere between ten weeks and seven months.

It’s not just the general public who are experiencing these delays. Those who deal with HMRC in a professional capacity, like RIFT Tax Refunds, are also seeing similar hold ups.

CEO of RIFT Tax Refunds, Bradley Post, commented:

“Like many government departments, HMRC had to adapt to an evolving workplace as a result of the pandemic. Their job has been made all the harder due to the continual reallocation of staff to deal with Brexit and Covid related initiatives such as furlough, SEISS and self assessment extension periods.

However, it’s fair to say that the service levels being provided have become a serious cause of concern and so we support the ATT, CIOT, ICAEW and ICAS in voicing these concerns.

We can only trust that HMRC are doing the best they can in a difficult situation and hopefully it won’t be too long before they manage to return to the time frames specified in their service-level agreement.

Until then, taxpayers are advised to get their paperwork sorted well ahead of time rather than waiting until the last minute like so many of us often do. It’ll help HMRC process everything in good time to meet deadlines, and ensure that you get any refunds when you need them, even if you’re selected for a security check.”