Business

Reform proposes £30 tax rebate for HMRC phone delays

BBC Business · 2026-08-26

AI SUMMARY

• What happened: Reform UK proposed a £30 tax rebate for individuals who are on hold with HM Revenue and Customs (HMRC) for over 30 minutes, aiming to improve customer service. • Why it matters: The proposal addresses ongoing criticisms of HMRC's handling of taxpayer inquiries, which has been described as "offensive to working people," and seeks to restore trust in the tax system. • What to watch next: Monitor the response from HMRC regarding the proposal and the potential impact on taxpayer services, as well as the political reactions from opposition parties concerning the proposed reforms.

**Reform Proposes £30 Tax Rebate for Delays in HMRC Phone Service**

In a recent announcement, Robert Jenrick, the economy spokesman for Reform UK, proposed a new policy aimed at addressing long wait times for taxpayers trying to reach HM Revenue and Customs (HMRC) by phone. Under this proposal, individuals who find themselves on hold for more than 30 minutes would receive a £30 rebate on their tax bill.

Jenrick criticized HMRC's current handling of taxpayer inquiries, describing the situation as "offensive to working people." He emphasized the need for improved customer service within the tax authority, stating that the proposed rebate would serve as an incentive for HMRC to enhance its responsiveness. "If HMRC delay, they can repay," he remarked during a media conference held in central London.

To prevent potential abuse of the proposed rebate system, Jenrick indicated that the tax credit would be limited to two instances per tax year. This measure aims to ensure that the policy is used appropriately while still providing relief to taxpayers who experience excessive wait times.

The announcement comes in the wake of a critical report released by the Public Accounts Committee in January 2025, which highlighted significant issues with HMRC's telephone service. The report revealed that nearly 44,000 customers were abruptly cut off after waiting on hold for over an hour in 2024. The committee's findings suggested that HMRC's approach to customer service had eroded trust in the tax system, a sentiment echoed by Jenrick in his remarks.

In response to the committee's report, HMRC stated that it had made improvements to its response times. However, Jenrick's criticisms reflect ongoing concerns about the quality of service provided by the tax authority. He asserted that tying the salaries of senior HMRC officials to customer service performance would further motivate the organization to prioritize taxpayer needs.

In addition to the phone rebate proposal, Jenrick outlined further reforms aimed at reducing regulatory burdens on businesses. He announced plans to replace existing UK privacy regulations, specifically the General Data Protection Regulation (GDPR), with a more lenient framework modeled after New Zealand's privacy laws. Jenrick argued that the current regulations have hindered the growth of small enterprises and technology firms, describing them as having "strangled" innovation.

The proposed changes to data protection laws have drawn criticism from opposition parties, particularly Labour, which accused Reform UK of attempting to dismantle essential safeguards for personal data. Labour spokespersons labeled the plans as "unworkable and unserious," raising concerns about the potential risks to individuals' privacy.

As the deadline for tax returns approaches, HMRC's phone lines remain open, and the organization has been contacted for a response regarding Jenrick's proposals. The developments come at a time when taxpayers are increasingly reliant on HMRC's services, and the effectiveness of these services is under scrutiny.

The Reform UK party's proposals, including the £30 tax rebate for phone delays and the overhaul of privacy regulations, are part of a broader strategy to appeal to voters concerned about government efficiency and taxpayer rights. As discussions continue, the impact of these proposals on both HMRC's operations and public trust in the tax system remains to be seen.

Source: BBC Business
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