HMRC’s New Personal Tax Query Resolution Service

Starting from 31st March 2025, HM Revenue & Customs (HMRC) will introduce a Personal Tax Query Resolution Service specifically designed for tax agents handling Self-Assessment and PAYE-related queries. This new initiative is set to streamline the process of resolving complex tax issues that remain outstanding despite previous attempts through the Agent Dedicated Line or Webchat.

With tax administration becoming increasingly complex, agents often find themselves navigating a cumbersome process to resolve queries on behalf of their clients. The introduction of the Personal Tax Query Resolution Service provides an escalation route that aims to improve efficiency, enhance communication, and ensure timely resolutions.

Understanding the New Resolution Service

Under the new system, tax agents will be able to escalate cases that remain unresolved after making two attempts via the existing Agent Dedicated Line or Webchat. Additionally, the cases must have been outstanding for at least 20 working days before they become eligible for escalation.

The goal of this service is to address longstanding concerns about slow response times and unresolved tax matters. By providing a clear escalation route, HMRC aims to alleviate the administrative burden on tax agents while ensuring that clients’ tax affairs are managed more efficiently.

Eligibility for Escalation

For a case to be escalated through the Personal Tax Query Resolution Service, it must meet the following criteria:

  • The agent must have contacted HMRC twice via the Agent Dedicated Line or Webchat.

  • The query must have remained unresolved for at least 20 working days.

  • The issue must relate to either Self Assessment or PAYE matters.

  • The case must not have already been referred to HMRC’s complaints process.

These requirements ensure that the service is reserved for cases that genuinely require further intervention rather than being a first-line resolution channel.

How This Service Benefits Tax Agents

1. Faster Resolutions

One of the primary benefits of this service is the potential for quicker resolutions to complex tax queries. Tax agents often experience frustration when waiting for responses, leading to delays in tax compliance and potential penalties for their clients. With a dedicated escalation route, cases that have remained unresolved for an extended period can receive priority attention.

2. Improved Communication with HMRC

A common challenge for tax agents has been the difficulty in obtaining clear and timely responses from HMRC. The new service aims to bridge this communication gap by providing a more structured pathway for escalating unresolved issues.

3. Reduced Administrative Burden

Dealing with HMRC can be time-consuming, requiring multiple follow-ups and documentation submissions. By ensuring that persistent queries are addressed efficiently, the new service allows tax agents to focus on other critical aspects of their work, rather than spending excessive time chasing responses.

4. Enhanced Client Confidence

For many taxpayers, the complexity of Self-Assessment and PAYE obligations can be overwhelming. Having a tax agent who can escalate and resolve issues efficiently instils greater confidence in the tax system and in the professionals handling their affairs.

Potential Challenges and Considerations

While the Personal Tax Query Resolution Service is a positive step, there are some potential challenges that agents should be aware of:

1. Ensuring Effective Implementation

The effectiveness of the service will depend on how well HMRC staff are trained to handle escalated cases. If HMRC does not allocate sufficient resources, the new service may not deliver the intended benefits.

2. Managing Expectations

While the service aims to speed up resolutions, it is not an instant fix. Agents and their clients will still need to be patient, particularly for highly complex cases requiring further investigation.

3. Clarifying the Scope of Issues Covered

It will be essential for HMRC to provide clear guidance on which types of cases qualify for escalation. Some tax agents may attempt to use the service for issues that do not meet the eligibility criteria, leading to potential backlogs.

How Agents Can Prepare

To make the most of the new service, tax agents should take proactive steps in adapting to the changes:

1. Document All Interactions with HMRC

Since cases require two prior contacts with HMRC before escalation, agents should keep detailed records of all communication, including reference numbers and summaries of discussions.

2. Ensure Queries Are Fully Prepared

To avoid unnecessary delays, tax agents should ensure that all required documentation and information are complete before contacting HMRC. This will make it easier to provide relevant details if escalation becomes necessary.

3. Stay Updated on HMRC Guidance

HMRC will likely issue further guidance on the use of the new service. Agents should stay informed about any updates to ensure they are using the service correctly.

Route For Unresolved Self-Assessment and PAYE queries

The introduction of the Personal Tax Query Resolution Service marks a significant development in how HMRC interacts with tax agents. By providing a structured escalation route for unresolved Self-Assessment and PAYE queries, the initiative seeks to improve efficiency, enhance communication, and ensure timely case resolutions.

For tax agents, this represents a valuable tool in navigating HMRC’s systems and serving their clients more effectively. However, to maximise the benefits, agents must ensure they understand the eligibility criteria, maintain thorough records, and manage client expectations appropriately.

 

Mascolo & Styles