ACCA urges chancellor to improve HMRC levels amid businesses dissatisfaction

ACCA has written a letter to chancellor Rachel Reeves urging her to reform HMRC efficiency after discovering that 89% of businesses are facing a significant “roadblock” due to poor service levels from the tax authority.

A recent survey from the accountants’ association found that there has been a “steady” rise in negative attitudes to HMRC since 2023, culminating in almost nine out of ten businesses being dissatisfied with HMRC. 

Gemma Gathercole, strategic engagement lead for England, ACCA UK, said: “Whenever we speak to our members, poor service levels at HMRC are almost always top of the agenda. The fact that negative attitudes have risen by over a fifth in five months shows meaningful change is needed. ACCA has repeatedly called on the chancellor to provide investment in HMRC to bring the service up to standard, and it’s something we’ve reiterated ahead of the budget later this month.”

Following the survey, ACCA has written to the chancellor ahead of the Budget to outline its recommendations which would “greatly” aid the UK economy on the whole, including proper funding for HMRC and a commitment to a programme of tax simplification for all. 

ACCA also recommends that the value of regulated professional agents is recognised, allowing accountants to “self serve” on certain issues, saving time on basic requests and allowing them to better support their clients. Creating a modern efficient tax system would ultimately boost UK productivity as a whole and would potentially enable HMRC to tackle fraud more effectively and avoid tax errors.

The Association of Chartered Certified Accountants has highlighted four key areas to help create the right environment to restore business confidence and return the economy to growth:

• Framework for growth – audit reform and the tax system
• Public sector finances
• HMRC services
• Support for business. 

ACCA believes that to nurture growth, action is needed to strengthen and simplify the regulatory framework. Clear guidance from strong regulators will not only reduce the burden on smaller businesses, but also allow the government to put its tax revenue to better use in supporting public services. 

In addition, continuing with the earlier work announced on audit reform will highlight the importance of the UK being a good place to do business as well as making real progress on audit and corporate governance policy.

Glenn Collins, head of technical and strategic engagement, ACCA UK, said: “ACCA believes in three foundations for a good tax system: simplicity, certainty and stability. Without a wholehearted commitment from the Chancellor to creating a modern, simplified tax system, these problems will continue to impact and affect all areas of economic activity in the UK. 

“As the Labour Government has made economic growth its number one priority, ACCA is hopeful that we will see the groundwork laid for achieving this, and one that draws on the expertise of our members to create the sustainable economic growth that will be key to meeting the UK’s ambitions.”