Is it worth making a formal complaint about HMRC?

For many of HMRC’s ‘customers’ who have spent more than 30 minutes trying to get through on the phone, the thought of making a formal complaint to someone about the service may seem attractive, especially if some recompense is on the horizon. The reality, however, is more nuanced. Whilst HMRC’s service standards have come under increasing scrutiny—particularly during Self Assessment season—knowing when and how to lodge a complaint can make a genuine difference to your experience and outcome.

When a formal complaint makes sense

A formal complaint to HMRC is genuinely worthwhile if you’ve experienced a clear service failure that has caused tangible financial loss or significant inconvenience. Examples might include: repeated missed appointments, failure to respond to correspondence within published timescales (typically 30 days), incorrect advice that led to an underpayment, or system failures that prevented you from meeting a deadline.

The key word here is evidence. If you’ve documented your attempts to contact HMRC, kept copies of letters sent and dates of calls, and can demonstrate a causal link between their failure and your loss, you’re in a much stronger position. Vague frustrations about long phone queues, whilst entirely valid from a user experience perspective, rarely result in compensation.

For sole traders and small business owners filing Self Assessment returns, HMRC does acknowledge seasonal pressures. However, if you’ve been unable to access your online account or receive clarification on a specific query after genuinely reasonable efforts to contact them, that’s worth escalating formally.

The complaints process explained

HMRC operates a two-stage complaints process. First, you contact the department involved directly—whether that’s the Self Assessment team, Pay As You Earn (PAYE), or VAT compliance. You must allow them 30 days to respond. If you’re unhappy with their response (or lack thereof), you can escalate to the Adjudicator’s Office, which is an independent body.

The Adjudicator can recommend that HMRC pay compensation for inconvenience, time spent remedying errors, or quantifiable financial loss. However, they cannot investigate complaints about tax policy itself or matters where you’re essentially disagreeing with how much tax you owe—that’s what the First-tier Tribunal is for.

Filing a complaint is free, and you don’t need professional representation, though it can help to have one of your accountants prepare supporting documentation. Most complaints are resolved without escalation to the Adjudicator, but expect the process to take 8–12 weeks from initial complaint to final response.

What compensation typically looks like

If HMRC is found at fault, compensation usually ranges from £50 to £500, depending on the severity and duration of the service failure. Larger awards (£500–£1,000+) are reserved for cases involving significant financial loss or extended periods of maladministration. It’s rarely a windfall, and the process demands your time and emotional energy.

More valuable than the compensation itself is often the resolution: a corrected tax record, a refund processed, or clarity on a compliance issue that’s been hanging over you. These practical outcomes are where complaints deliver real worth.

Should you involve your accountant?

If you’re a Self Assessment filer or business owner using an accountant, it’s worth discussing a complaint with them first. They may have experience with similar HMRC issues and can advise whether formal complaint is the right route, or whether a different approach—such as requesting a compliance check or applying for a time extension—might serve you better.

For more complex matters involving disputed assessments or significant sums, the tribunal system might be more appropriate than a service complaint. Your accountant can guide you towards the most effective remedy.

The bottom line

A formal complaint to HMRC is worthwhile if you’ve suffered a genuine, documented service failure that affected you materially. It’s less worthwhile if you’re simply frustrated with waiting times or disagree with a tax decision—those frustrations are valid, but they’re not grounds for compensation.

What matters most is being clear-eyed about what you’re hoping to achieve. If it’s an apology and a small token payment, formal complaint might deliver. If you’re seeking to overturn a tax bill or recover a large sum, you’ll likely need a different approach.

For tailored advice, contact Severn Accounting — we’re here to help.