When things go wrong at HMRC what can you do?

As a consumer expert I advise on how to use consumer law and complain effectively to gain redress but there are areas where you may need to complain and I enlist the help of a specialist. I have asked Mahmood Reza to explain just how and when to complain to HMRC.

About Mahmood Reza

Mahmood is an accountant, tax advisor, educator, author of I Hate Numbers, and founder of I Hate Numbers.  For over 30 years, he has been helping business owners, social enterprises, and entrepreneurs build stronger, more profitable businesses.  His mission is simple: help you understand your numbers so you can make smarter decisions, save time, pay less tax, and make more money. Once you know what your numbers are telling you, you’re in control – and that’s where success starts.

From a back bedroom start-up in 1995 to a thriving business today, he has worked with people from all walks of life – advising on tax, accounts and business, teaching, and mentoring across sectors and (even) continents.  Whether it’s through his I Hate Numbers podcast, YouTube channel, or his book I Hate Numbers,he makes finance simple, human, and practical.

HMRC and The Complaints Process

Her Majesty’s Revenue and Customs, or HMRC as most of us call it, celebrated its 20^th birthday in 2025. It’s a beast of an organisation, and administers, collects and  polices all UK taxes, has over 66,000 staff, and collected over £850 billion of tax in 2024-25.

Most birthday celebrations will feature birthday cards, congratulatory messages and cake – that’s unlikely to be at the forefront of many taxpayers peoples thoughts and experiences.  Prior to 2025 we had the Inland Revenue, its roots going as far back as 1665!

The number of recorded HMRC complaints is about 35,000 per annum, I suspect a great deal more taxpayers, including accountants, feel that’s it’s a waste of their time and energy, and don’t bother.

The HMRC Complaints Process

When HMRC messes up or leaves you pulling your hair out, there’s a way to complain. It’s not glamorous, but it’s there. HMRC uses a two-tier complaints process — think of it as “try again” if they don’t fix it the first time.

Tier One: The First Crack at It

Tier one is HMRC’s first go at sorting your complaint when it wasn’t resolved by the person you first spoke to — maybe the helpline hero or enquiry officer.

Tier Two: The Do-Over

If the tier one reply doesn’t cut it, you can ask for it to go up a level. HMRC will take another look. Sometimes, even if they say the issue’s done and dusted, they’ll escalate it themselves if you keep pressing. Persistence pays.

But before we dive in, let’s talk about what they expect from you — and what you should expect from them.

What HMRC Expects from You

• Be honest.
• File your tax properly.
• Treat their staff with respect.

What You Can Expect from HMRC

• Fair and respectful treatment.
• Support to help you get tax right.
• Safe and private handling of your data.
• To follow their own HMRC Charter (last updated November 2020).

The HMRC charter is a useful reference point, but HMRC have challenges meeting it.

A Charter Stakeholder Group) survey in 2024 looked at whether tax agents and taxpayers believe HMRC are meeting their Charter standards.

The survey received nearly 1,650 responses, with complaints about service levels, a recurring theme. It found that:

“Being responsive” scored the lowest of the Charter standards, with an average score of just 2.4 out of 10

“Making things easy” and “getting things right” also scored poorly, at 2.8 and 3.5 respectively

The situation is improving, but still some way to go!  Don’t despair, just be more resilient, patient and focused.

When You Might Complain to HMRC

You might have grounds to complain if you’ve:

• Waited ages for a response.
• Been treated unfairly or rudely.
• Experienced discrimination (because of age, disability, or language).
• Been given wrong or confusing information.
• Suffered poor service — full stop.

Other examples include:

• Getting the wrong benefits or tax credits.
• Being told to pay the wrong tax or National Insurance.

👉 Heads-up: If your gripe is about the amount of tax due or a decision, that’s an appeal, not a complaint.

👉 For the brave (and well-funded bank accounts), there’s judicial review — but it’s expensive, complex, and has strict deadlines.

Setting Out Your Complaint to HMRC

Before you hit send, stop and think. What exactly went wrong, and what do you want fixed?

Take the reader through the story, step by step. Start with what happened, then add a short timeline. Mention what HMRC said or promised and what they didn’t deliver.

Back it up with references from the HMRC Charter, the one that says they’ll be fair, professional, and treat you with respect. If it’s an enquiry issue, also mention the Professional Standards for Compliance they’re supposed to follow.

At the end, provide a summary to what you’re after. Keep it polite, keep it factual, and ditch the emotion. Even if the officer handled things badly, don’t name and shame, it’ll only backfire and distract . Stay calm, stay sharp, and let the facts do the talking.

You’ve been let down. You expected better. Let them see that professionalism trumps frustration.

How to Make a Complaint to HMRC

You’ve got a few ways to raise your issue:

• By letter: Write to the HMRC office dealing with you. Mark it clearly with “COMPLAINT”. It’s worth taking out a mini loan to pay for the signed for postal service and keep the receipt!
• By phone: Call the office handling your case, put aside time, and a flask of coffee. Make a note of the person you spoke to, date, and time of the call.
• Online: Use your digital tax account – if you don’t have one, then get one set up.

If your complaint involves discrimination, say so at the start — it’ll go straight to a specialist team.

Information and Evidence to Provide when complaining to HMRC

• When you complain, include:
• Your full name.
• National Insurance number or UTR (Unique Tax Reference)
• Address and any recent HMRC reference.
• Contact details.
• What went wrong, when, who you dealt with, and what it cost you (time, money, or sanity).
• What do you want HMRC to do about it.

Keep proof. Always.

• Save and collate letters, emails, and screenshots.
• Note down dates, call times, and adviser names.
• Keep copies of everything.

If you need to or want to check what HMRC hold on you then you can file a Subject Access Request (SAR). It’s free, and they must respond within a set time. Handy if you need to see call notes or system entries.

PAYE Underpayments and ESC A19

PAYE Underpayments are a common cause of stress and anxiety for taxpayers.  The responsibility for making sure you have paid the right amount of tax under PAYE is on you as the employee, not the employer.  So HMRC will be after you!

You may have grounds for complaint if HMRC:

• Ignored information you gave them.
• Assured you your tax was correct — and it wasn’t.
• Misled you with poor advice.
• Failed to help you avoid an underpayment.

If they’ve messed up, you could be due compensation or cost reimbursement.

Extra Statutory Concession A19 (ESC A19)

If HMRC had the info but sat on it for ages, they might not be able to collect the full tax.

For example, you informed HMRC about your new State Pension in 2022.  They did nothing for two years. Under ESC A19, you could argue you shouldn’t have to pay that backdated tax.

If you think this applies, mention it clearly in your complaint.

What to Expect After Complaining to HMRC

HMRC aims to normally reply within 30 days – that’s the aim, not always the reality.

If they can’t, they must send an interim response and explain next steps.

Complaints about serious staff behaviour get escalated fast.

If you don’t want the same people reviewing your case, then you can ask for a separate complaints handler.

Possible Outcomes of an HMRC Complaint Review

When HMRC reviews your complaint, you’ll get one of three verdicts:

• Fully upheld: They agree with you. Pop the kettle on, you’ve won this round.
• Partially upheld: You’re half right, half wrong.
• Not upheld: They’re not budging. computer says no

HMRC likes to wrap things up at tier one. If that fails, tier two gets a turn. Still unhappy? You can take it to the Adjudicator’s Office, and beyond that, the Parliamentary Ombudsman.

But beware — both have strict rules about what they’ll handle. Marching up the chain without checking those boxes first can waste time, money, and patience. And no one likes rejection after all that effort.

Before you go in all guns blazing, remember — HMRC complaints staff can only do so much. They can’t wave away legally due tax just because someone on the other side was a pain to deal with. The Litigation and Settlements Strategy keeps them on a tight leash.

That said, if HMRC dragged their feet or made a mess, you can often get late payment interest reduced. It’s not a win on tax, but it’s a start.

How HMRC Might Resolve Your Complaint

If HMRC accept fault, they may:

• Apologise and fix their error.
• Explain what went wrong.
• Refund reasonable costs (calls, postage, professional fees).
• Make a consolatory payment for stress, delays, or poor handling.

The Common Response Within the Profession about complaints to HMRC

Ask most accountants about complaining to HMRC and they’ll groan:

“What’s the point? They never listen.”  I’ve heard it myself and been guilty of saying it.  The truth? Good complaints get results. Badly written, angry ones don’t.

A clear, respectful complaint backed by evidence works better than a rant. Remember, HMRC staff are human (mostly). Attack them and they’ll dig in. Present the facts calmly, and you’ll often get traction.

The truth? Many complaints flop not because they’re wrong, but because they’re badly written. A ranty, emotional email or one sent to the wrong person kills your chances before they even read it.

Put yourself in the complaints officer’s shoes. If you received a letter packed with insults about your department or your mate down the corridor, would you roll out the red carpet? No. You’d go straight into defence mode.

So, tone matters. Facts win. Fury doesn’t.

Setting Out Your Complaint to HMRC

Here’s the I Hate Numbers golden rule: Plan it, do it, and complain it well.

• Be clear on why you’re complaining.
• State what you want fixed.
• Write your story simply and chronologically.
• Link your complaint to HMRC Charter standards — show where they fell short.
• In enquiry cases, reference Professional Standards for Compliance.

Keep your tone cool, not cruel. Let the evidence speak louder than emotion. You’ll look professional, not furious — and that gives you the upper hand.

Compensation Claims and Payments for Redress from HMRC

If HMRC upholds your complaint, they may offer compensation. Don’t get too excited,  we’re not talking caviar and champagne money here, but ironically, it’s tax-free!.

Usually, they’ll pay a small sum for distress or inconvenience — maybe around £50 these days. Back in the day, you might’ve got a book of stamps or a bunch of flowers.

But if you’ve had to pay your accountant for time wasted because of HMRC’s blunders, you can claim for professional costs. That’s where the real redress lies.

By the way, you can’t claim for your own time unless it cost you actual income.

If You’re Still Unhappy with HMRC

Escalation Within HMRC

Ask for a different complaints handler to review your case. This is the last stop inside HMRC.

The Adjudicator

Independent of HMRC, they check if proper process was followed and can recommend action.

The Parliamentary Ombudsman

If you disagree with the Adjudicator’s findings, ask your MP to refer it to the Parliamentary and Health Service Ombudsman.

They’re separate from HMRC and can investigate poor administration — but you can’t contact them directly.

Outstanding Tax Bills

Keep paying tax while your complaint’s being reviewed. If you don’t, you could rack up interest and penalties. If HMRC later agree you overpaid, they’ll refund it — often with interest.

Subject Access Requests (SAR)

Under UK data laws, you’re entitled to see what HMRC holds about you. You can ask for it using a Subject Access Request (SAR) — and it can be a powerful tool in your complaint arsenal.

Ask for copies of HMRC’s records or case notes. Sometimes they’ll stall, but they have to cough it up eventually.

So, when the facts are fuzzy, get a SAR in. It’s your right, and it can turn the tide.

Final Word on complaining to HMRC

Complaining to HMRC takes patience, proof, and persistence — not rage.

Stick to facts, document everything, and keep your cool. Do that, and you stand a real chance of being heard, refunded, or compensated.

Because in the I Hate Numbers world, complaining isn’t moaning — it’s smart financial self-defence.

Plan it. Do it. and Profit.

Changes to filling out tax returns

From April 2026, the way millions of self-employed people and landlords report their income is changing. Under “Making Tax Digital” (MTD), the current free HMRC online tax return portal will be removed for those in scope. This effectively creates a “Software Tax” by stealth, forcing you to buy private subscriptions just to fulfil a legal duty. You wouldn’t pay for an app to pay your Council Tax, so why should you pay to file your Income Tax? We support digital modernisation, but if the government mandates this to close the tax gap, they must provide a free, basic tool just as they did for Universal Credit. Don’t let compliance become a privatised cost; demand a state-provided option and sign the petition today at stopthesoftwaretax.co,uk

Do the Hustle – and pay the right tax! post regarding paying tax when you have a side hustle.

Further help with complaining effectively

See Top 20 Tips on how to complain effectively

 

If you need help with complaining effectively and making sure you are never fobbed off. GET THE BOOK! How To Complain: The ESSENTIAL Consumer Guide to Getting REFUNDS, Redress and RESULTS! Includes information and templates on challenging parking fines and parking charges and templates.

 

 

101 Habits of an Effective Complainer to help you become more skilled and assertive when making complaints.

 

 

 

 

Purchase downloadable templates to gain redress including parking template letters.