HMRC Complaints Reach Highest Level In Five Years

Complaints against HM Revenue and Customs (HMRC) rose significantly to 93,589 in the 2024–25 financial year, marking the highest annual tally since 2021. This development highlights growing public dissatisfaction with customer service at the UK’s primary tax authority, supported by official data and professional commentary.

While more cases triggered financial redress for affected individuals, the average compensation payout has dropped to its lowest point in five years.

Persistent backlogs, delayed refunds, and a shift to digital systems are placing strain on the relationship between taxpayers and HMRC.

Surge in formal complaints against HMRC

The number of formal complaints registered with HMRC rose to 93,589 in 2024–25, according to figures obtained through a Freedom of Information request. This marks a significant jump from the 78,542 grievances recorded in the 2020–21 financial year, reflecting a rising trend in public dissatisfaction with the tax authority.

The increase represents a five-year peak in complaint levels. Experts attribute this to a combination of declining service standards, operational changes, and pressures brought about by ongoing restructuring and resource constraints.

Historic trends and recent increases

HMRC’s complaints levels have fluctuated over the past decade but have reached a five-year high in the latest financial year. Data shows that complaints rose steadily from 2020, with the 2024–25 figures surpassing those seen at any time since 2021.

This backdrop coincides with challenges within the department. HMRC confirmed it failed to meet its own performance targets on telephone response times, postal correspondence and overall customer satisfaction during the nine months up to December 2025.

The National Audit Office has previously linked such declines to funding reductions, reduced staffing, and a strategy that encourages taxpayers to use online self-service channels.

Compensation payments: higher volume, lower sums

Alongside the increase in complaints, there was a rise in the number of compensation payments issued. In the 2024–25 financial year, 15,304 cases resulted in financial redress, up from 11,333 cases five years earlier.

Despite this increase in volume, the average compensation payout fell to £125.27, the lowest average seen during the last five years. This reduction in average payment has led to concern among taxpayers and advisers, particularly as many users report hardship caused by delays and unresolved issues.

Ongoing backlogs and operational challenges

HMRC’s own service dashboards continue to show backlogs in areas such as marriage allowance applications, employment and pension tax refunds, self-assessment repayments, and penalty appeals.

These operational issues have contributed directly to the rising number of formal complaints. 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 warned that the department’s push toward digital systems, without fully operational alternatives for personal support, risks compounding current difficulties.

Tax profession highlights persistent concerns

Industry bodies and professional advisers have voiced ongoing concerns over HMRC’s performance. 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.” He acknowledged progress in some areas but warned of persistent delays, particularly in postal processing and refund timelines.

Emma Rawson, director of public policy at the Association of Taxation Technicians, described the scale of complaints as “sadly unsurprising” given continued challenges, noting formal complaints are typically a last resort for taxpayers.