HM Revenue & Customs continues to grapple with significant industrial action, initiated in December 2024 and recently extended through to 6 June 2025. This prolonged strike, involving thousands of HMRC staff and outsourced workers, is disrupting essential services and affecting taxpayers across the UK.
What’s happening at HMRC?
The Public and Commercial Services union has led strike action involving over 30,000 civil servants, including more than 400 HMRC employees. The dispute centres on pay disparities, with outsourced staff receiving lower increases than their in-house counterparts.
HMRC has stated that it is prioritising critical services during this period, but many non-urgent functions are experiencing delays.
Delays in tax refunds and PAYE services
One of the most pressing issues is the backlog in processing tax refunds, particularly for small businesses and self-employed individuals. Refunds that previously took a few weeks are now taking over four months.
This delay is especially concerning for small businesses and charities that rely on timely refunds to maintain cash flow. The Construction Industry Scheme, which involves tax deductions at source for subcontractors, is also affected. Subcontractors have reported issues with verification processes, leading to higher-than-necessary tax deductions.
Strain on helplines and customer service
HMRC's helplines, including the Employer Helpline and CIS Helpline, are operating with extended hours but are experiencing longer wait times due to the industrial action. Calls to these lines are being answered at a reduced rate, with some areas reporting that only 63% of calls are being addressed.
Additionally, the Public Accounts Committee has criticised HMRC for inadequate telephone services, with average waiting times exceeding 23 minutes and a significant number of calls going unanswered. This situation has eroded taxpayer trust in HMRC's ability to manage tax affairs efficiently.
Tips on how taxpayers can navigate the disruption
While the industrial action continues, taxpayers can take several steps to minimise the impact:
- Utilise digital services: HMRC encourages the use of online tools such as the Business Tax Account, the 'Where’s My Reply' tool for checking the status of CIS refunds, and the Construction Industry Scheme digital assistant for common queries.
- Be patient with refunds: Understand that processing times are longer than usual. If your refund is delayed, monitor the status online and avoid contacting HMRC unless the expected date has passed.
- Document communications: Keep records of all interactions with HMRC, including dates and details of conversations. This documentation can be useful if issues arise or if you need to escalate a matter.
The next step
The ongoing industrial action at HMRC underscores the challenges faced by taxpayers and the tax authority alike. While HMRC is working to maintain critical services, the extended nature of the dispute has led to significant disruptions.
We advise taxpayers to stay informed, utilise available digital resources and be patient as the situation evolves. If you have any questions regarding the above, please contact Kelly Lewis at k.lewis@uhy-uk.com or get in touch via our contact form below.
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