Press Release - HM Revenue & Customs: Managing variations
in workload
15 May 2009
HM Revenue & Customs faces large peaks in its workload but,
by introducing different filing deadlines for paper and online
Income Tax Self Assessment returns, it has smoothed some of those
peaks.
A National Audit Office report today found that, in 2007-08,
HMRC received more than a quarter of the 4 million Tax Credit
renewals forms in July (the renewal deadline) and it processed half
of the 8.2 million Income Tax Self Assessment returns during
January to March. At busier times customers experience delays on
their correspondence and receive a less responsive service. In the
lead up to the Income Tax Self Assessment deadline in January 2008,
HMRC answered just two thirds of the 7 million telephone calls made
to its contact centres.
By encouraging more customers to file tax returns online and
removing the need for some returns, HMRC has smoothed peaks in
workload and released resources of £7 million a year. The peak in
Tax Credit renewal work has, however, increased as the deadline has
been brought forward to reduce overpayments. Using different
processing targets throughout the year and giving customers more
information about how long their information will take to process
during peak periods could help spread work out throughout the
year.
During busy periods, HMRC tends to process simpler Income Tax
cases, postponing more complex checks and less urgent work. During
peak periods, staff productivity is higher, partly reflecting the
simpler cases, but HMRC also experiences increased staff sickness
absence.
HMRC moves staff within the individual Tax Credit and Income Tax
teams to utilise staff time effectively. Although the Tax Credit
processing peak coincides with a trough in Income Tax work, HMRC
does not move staff between the two areas because of the need to
deal with the build up of post and other work from peak periods,
limitations in its IT systems and the staff training that would be
required. The Department could make greater use of modern
employment practices used by other organisations such as part-year
permanent contracts.
The experience of HMRC and other organisations is that between
15 per cent and 40 per cent of contact with customers is avoidable.
Reducing the number of avoidable calls by 15 per cent could release
resources of up to £23 million a year or 11 per cent of its annual
spending on contact centres.
Tim Burr, head of the National Audit Office, said
today:
"Peaks in the workload of HM Revenue and Customs push up the cost
of running the Department and reduce service quality. By changing
the deadlines for tax returns and removing the need for some to be
filled in, HMRC has already saved £7 million. By expanding take up
of online services further, and helping people avoid unnecessary
calls to contact centres, HMRC can reduce costs and provide a
better, year-round service."
Notes for Editors:
- In 2007-08 HM Revenue & Customs employed 86,000 staff and
cost £4.3 billion to run, of which £2.7 billion was on staff. Most
staff are on full time permanent contracts although some are on
temporary fixed term contracts for up to 11 months. Over a quarter
of the Department’s staff are involved in administering Income Tax
forms and Tax Credits at a cost of £1.4 billion a year.
- The Department experiences significant variations in processing
workload because of statutory deadlines for submitting Income Tax
returns (October and January) and Tax Credit renewal claims (July).
Its contact centres also experience significant peaks in work from
dealing with customer queries about their Income Tax and Tax Credit
forms.
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Tim Burr, is the head of
the National Audit Office which employs some 850 staff. He and the
NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 30/09
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