Martin Lewis' top tip when calling HMRC helpline
Ministers, top civil servants, and members of the Royal Family are receiving fast-tracked tax advice through an ultra-exclusive HMRC helpline—while millions of ordinary taxpayers endure record-long wait times or are cut off entirely.
The special helpline, known as Public Department 1 (PD1), allows those who call to have their tax queries dealt with in just three minutes on average—seven times faster than the general public.
At its worst, the standard helpline kept more than 40,000 taxpayers on hold for over 70 minutes before automatically cutting them off.
The scale of the disparity was revealed in a damning report by the Public Accounts Committee, which found that only 66% of calls to HMRC’s general helpline were successfully answered in 2023-24.
Separate data first reported by The Times showed that in June 2024, the public waited over 25 minutes on average, while VIPs using PD1 had their calls answered in just 1 minute and 44 seconds.
A tax guide issued by HMRC for new MPs highlights PD1’s privileges, including the ability to set up self-assessment accounts for newly elected representatives.
The department also pledges to respond to phone queries within three working days and letter inquiries within ten working days—compared to the nine-month wait ordinary taxpayers can face for written responses.
Critics have slammed HMRC’s two-tier approach. John O’Connell, chief executive of the TaxPayers’ Alliance, said: “Taxpayers are getting sick of seeing that when it comes to tax, it’s one rule for [HMRC] and one rule for everyone else.
"The tax system is miserably complicated, making life extraordinarily difficult for businesses and families across the country, yet when they pick up the phone they struggle to even get an answer from HMRC.”
Liberal Democrat deputy leader Daisy Cooper also condemned the service gap, calling it “shocking.”
She said: “Small businesses and people just wanting to do the right thing and pay their taxes should not be subjected to anxiety-inducing waits.” She added that “HMRC was run into the ground under the Conservatives and the Labour government cannot be allowed to repeat the same mistakes. Without investment into HMRC, tax dodgers will continue to get off scot-free whilst honest people are pushed to the back of the queue.”
The controversy over HMRC’s handling of taxpayer inquiries intensified in March 2024 when the tax office announced it would close its helplines for six months of the year, forcing more people to use its online services.
The move was reversed within 24 hours following backlash from then-Chancellor Jeremy Hunt. However, MPs on the Public Accounts Committee accused HMRC of deliberately allowing phone services to deteriorate in an effort to push people toward digital alternatives.
Meanwhile, complaints about HMRC’s phone services have soared, rising more than six-fold since 2019. In 2018-19, HMRC recorded 1,244 complaints about phone service; by 2024, that figure had jumped to 8,037.
An HMRC spokesperson defended the existence of PD1, stating: “These taxpayers have reduced options to use HMRC’s digital services and main helplines to handle their affairs because of restricted access to their records.
"This leads to an increased need to contact HMRC to resolve their tax enquiries and for a separate helpline serviced by a very small team in PD1.”
Despite this, HMRC has been pushing the general public toward online webchat services—though figures suggest usage is falling. VIPs, however, are unable to use webchat due to security concerns, further reinforcing the need for their exclusive helpline.
Adding insult to injury, HMRC is set to raise the interest rate on late tax payments to 8.75% from April, the highest level since 1992.
Despite answering half the number of calls it did a decade ago, the tax office continues to ramp up fines and penalties for late payments.
With public frustration mounting, MPs and campaigners are calling for urgent investment in HMRC to improve customer service. “If those in power want to maintain this privilege, they need to insist that the taxman improves its service for everyone,” O’Connell warned.
Related articles
- Labour eyes radical DWP reforms to curb 'unaffordable' spending
- Bank of England warned rate cuts could unleash new inflation nightmare
- Nationwide to axe £175 payment as deadline issued to claim before it stops
- Cash ISA update as 'Rachel Reeves' bid to slash limit to £4,000' is torn apart
- Pensioners driven to despair by DWP red tape and up to 450 questions