Tricky forms cost £330m, MPs tell HMRC

Overly complicated self-assessment tax forms are costing HM Revenue and Customs £330m a year, according to the Commons public accounts watchdog.

A report from the Commons public accounts committee criticised HMRC for the telephone advice offered to taxpayers and called on the department to improve the quality of website and online services.

The report said the telephone service provided by HMRC failed to meet normal industry standards, with 72 per cent of calls answered within 20 seconds, falling short of the industry benchmark of 80 per cent.

It also said HMRC websites were not user-friendly and called for the department to expand its online services and offer users greater opportunity to email staff with queries.

The committee accused HMRC of running a website that was "a bit of a maze" and said some of its leaflets were still going over the head of people who had below average literacy.

Committee chairman Edward Leigh said there was significant room for improvement in the services offered to self-assessment taxpayers by HMRC.

"Too many people are unintentionally making mistakes, resulting in an estimated underpayment of tax each year of some £330 million," he said.

"The department is falling short of industry standards in how quickly phone enquiries are picked up and dealt with.

"Too many callers are still being shunted round the system rather than directed straightaway to the staff with the right knowledge," he added.