As a VAT consultant, I am used to the fact that dealing with HMRC is a bit of a hit and miss affair. Sometimes you’re lucky and speak to an officer who understands the system AND your query and you get a very helpful reply to your query. Other times, it’s like pulling teeth. And my most recent engagement with HMRC was definitely in the “pulling teeth” category.
It was such a simple query….
Most of the VAT work I do for clients is about UK business, with some international and intra-EC trade. I’ve built up knowledge and experience about particular subjects over the years and – more importantly – I know what I DON’T KNOW. So while I understand the rules and the practices involved with claiming VAT on imports pretty well, I know that I am not an expert on international trade and import/export procedures. HMRC should be able to give me the right information or tell me where to find the information that I need if I have queries about such issues. After all, running the import and export systems is one of their most important functions.
In January, one of my clients had a problem with obtaining certain documentation and asked me to contact HMRC to find out the correct procedure to make sure that the problem didn’t happen again.
So why did it take 5 attempts to get the right answer?
Now let me make this quite clear. I am NOT complaining about any individual officers. Between January and March, I spoke with four different officers and each one was helpful, polite and, where necessary, took the time to double check their advice with their manager. On each occasion, I relayed this information to my client and on each occasion I, or my client, followed the advice given by HMRC to try and resolve the problem.
But even after the 4th discussion with an HMRC officer, it was clear that we still hadn’t got to the bottom of the issue. It was only after persistent attempts to find the answer that I was able to speak directly with the specialist team concerned and find the answer. And even then, the officer had to refer the query to her manager to be certain that her advice was correct.
Anti-business?
HMRC has a number of functions, one of which is to run the import/export procedure for the UK. This means that they should facilitate the movement of goods and services to and from the UK and provide correct and timely advice for importers and exporters.
And for 99.9999% of transactions, this is what happens. However their system – in the form of the Customs and international trade helpline – for dealing with the other very small percentage leaves a lot to be desired. On each occasion I asked for advice, I was given only partially correct information and on at least one occasion, the advice was actually WRONG. Added to the fact that on each occasion, before being allowed to SPEAK TO A HUMAN BEING I first had to have a conversation with a computer, then I had to spend several minutes each time waiting to get through to the helpdesk. Plus the incorrect advice that I was given on one occasion meant that my client spent time and money making unnecessary changes to their existing arrangements.
I DO NOT EXPECT EVERY SINGLE HMRC OFFICER TO KNOW THE ANSWER TO EVERY QUESTION. However, as a taxpayer, never mind a professional advisor, I am appalled at the poor level of service that I received on this occasion. Personally, I would make a formal complaint to HMRC about the service but my client doesn’t want to cause a fuss. And I’m not sure that HMRC is particularly bothered about such individual complaints, believing that their service is “fit for purpose”.
But these situations only emphasize that HMRC has a long way to go in having systems that are “fit for purpose” and in the meantime, businesses have to try to find their way around the rules as best they can.
Writing a book about VAT and property was SO MUCH easier than trying to get a direct, correct reply to a simple question from HMRC. Unfortunately in the real world, we have to deal with HMRC most of the time. The fact that we have to make do with such poor service reflects badly on the politicians who decide how much money to spend on the system. For a government that is supposed to be “pro-business”, this is not reflected in the level of service we get from one of the most important government departments.
Marie
13 March 2012