New HMRC software aims to reduce delays

In a bid to address its widely criticized customer service, HM Revenue and Customs (HMRC) has announced plans to implement voice recognition technology that will allow taxpayers and accountants to use their voice as a password when contacting the tax authority.

The new system, currently in trial phase, aims to enable customers to pass security checks more quickly and securely. This initiative follows consultations between Treasury minister James Murray, HMRC officials, and private sector companies including NatWest and Octopus Energy to gather insights on customer service best practices.

HMRC expects to roll out the voice recognition technology across its services throughout the remainder of the year. Additionally, the tax office is exploring the use of generative AI to direct taxpayers to relevant online advice, following an industry trend of implementing AI solutions to enhance customer service capabilities.

While the voice recognition system promises to expedite security verification, taxpayers may still face significant waiting times. HMRC has acknowledged that it has not been sufficiently resourced to meet current telephone demand, which has increased substantially due to more people paying tax as a result of fiscal drag.

This acknowledgment comes after a damning report by the Public Accounts Committee (PAC) revealed that average call waiting times reached an unprecedented 23 minutes in 2023/24, up from 16 minutes 24 seconds in the previous year. The report also stated that HMRC answered only 66.3 percent of customer calls, significantly below its 85 percent target—a benchmark the tax office has not met since 2017/18.

HMRC has disputed allegations in the PAC report that it deliberately degraded its phone services. The tax authority maintains that it achieved its 85 percent call handling target between October and December 2024 and anticipates meeting its customer service standards in 2025/26.

In addition to the voice recognition initiative, the Government has announced plans for a new service providing an escalation route for agents with Self-Assessment and PAYE queries that remain unresolved after four weeks. This service will implement a ’once and done’ approach, with advisers staying with cases until resolution.

Ellen Milner, director of public policy at the Chartered Institute of Taxation, welcomed these developments: "We welcome the government’s focus on simplifying the tax system and improving customer service – rightly two key priorities for HMRC as the tax authority heads into its third decade."

She added, "A more