Raising a Complaint Against HMRC: Is It Worth It?

Understanding the Complaints Process

If you’ve ever spent over half an hour trying to reach HMRC on the phone, you might be tempted to file a complaint about the service. While the idea of receiving compensation might make the process more appealing, it’s important to understand that the complaint system is structured and limited in scope.

HMRC uses a two-tier complaints process:

1. First Tier: You lodge your complaint directly with HMRC.

2. Second Tier: If you’re not satisfied with the response, you can request a final review by a different HMRC officer.

If, after both stages, the issue remains unresolved, you may then take the matter to the Adjudicator’s Office (AO) — an independent body that assesses whether HMRC has handled the complaint fairly.

What Does the Adjudicator’s Office Do?

The Adjudicator’s Office provides an independent review of complaints that have already gone through HMRC’s internal complaint system. Although it cannot enforce decisions, it can make recommendations, such as issuing an apology, offering financial redress, or suggesting process improvements.

The AO does not review HMRC’s decisions about tax assessments or penalties but instead looks at whether HMRC managed the complaint appropriately according to its procedures and policies.

Types of Complaints the AO Can Handle

The Adjudicator’s Office can only investigate certain categories of complaints:

• Administrative mistakes

• Unreasonable delays

• Misleading or poor guidance

• Procedural errors

• Inappropriate staff behaviour

• Whether established policies were followed

• Reasonableness of HMRC’s discretionary decisions

If HMRC used discretion in its decision-making, the AO will only evaluate whether the process was reasonable, not whether a different outcome would have been better.

How to Escalate a Complaint

Before the Adjudicator’s Office can step in, you must first exhaust HMRC’s internal complaints process (both tiers). Once that’s done, you have up to six months to escalate the case to the AO.

Reviews by the AO typically take three to six months, depending on the complexity and current case volumes. It’s also worth noting that reaching this stage often involves a significant paper trail—letters, calls, and multiple points of contact.

What the Data Says: AO Annual Report 2023/24

According to the AO’s 2023/24 report:

• 1,046 complaints about HMRC were received (up from 950 the previous year).

• 41% of these were upheld in full or in part (down from 47% the year before).

This shows that while not every complaint is successful, a significant portion does lead to some form of acknowledgment or redress.

Can You Receive Compensation?

Yes, but only in specific circumstances. If the AO finds that HMRC’s actions caused you to lose money or suffer anxiety or distress, it can recommend compensation.

• In 2023/24, the AO recommended £103,063 in redress.

• In 2022/23, HMRC paid out a total of £718,000 in compensation across 4,742 cases, averaging £136 per claim. Those who escalated their complaints to higher levels received an average of £371.

What to Expect: Practical Considerations

While there is a path to raising concerns and receiving compensation, the process is often time-consuming and paperwork-heavy. You may be asked to provide detailed supporting documents, such as receipts or correspondence.

In many cases, the compensation awarded may not be worth the effort involved, especially when considering the emotional and administrative toll. However, for more significant issues or prolonged service failures, pursuing a complaint might bring both resolution and accountability.

Further Reading & Guidance:

• HMRC Complaints Handling Manual

• The Adjudicator’s Office Annual Report 2024

• Role of the Adjudicator

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