Draft Finance Act 2021 (Increase in Schedule 26 Penalty Percentages) Regulations 2025

Wendy Chamberlain Excerpts

Wednesday 7th May 2025 General Committees

[Wendy Chamberlain (North East Fife) (LD)]

It is a pleasure to serve under your chairmanship, Mrs Harris. I want to take a short period of time—much shorter than the time that many of our constituents wait to get through to HMRC—to echo the remarks of the shadow Minister, the hon. Member for Grantham and Bourne. HMRC plays a crucial role in the tax system, but recent statistics show significant challenges in its customer service. I am aware of constituents who wish that they could give up waiting on the phone line, but they know that if they do, penalties are potentially waiting for them. Although what we are debating here is limited in its changes, it is a challenge.

I want to cite briefly a statistic from the 2022-23 tax year: taxpayers collectively spent over 7 million hours—equivalent to almost 800 years—on hold to HMRC. In 2023-24, only two thirds of calls to HMRC were actually answered by advisers, falling far short of the 85% target. I note the limitations of the changes, but my question, in addition to those of the shadow Minister, is whether an inability to get through to HMRC will be considered a reasonable excuse for not paying fines.