Memorandum from HM Revenue & Customs
Question 1 Please could you indicate the four
most significant (in terms of size) services your department provides
to individual citizens, either directly or through its agencies:
| No. people receiving service
| Cost* |
Pay as you earn (PAYE)
including National Insurance (NI)
| 1.9 million employers
36.9 million taxpayers
**
| Admin costs £851.5 million (PAYE) + £360.5 million (NI) = 1,212 million (total). This is equal to a cost of 1.25 pence for each pound collected from PAYE, and 0.42 pence for each pound collected from NI.
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Self Assessment (SA) | 9.2 million customers
| Admin costs £800.6 million. This is equal to a cost of 1.28 pence for each pound collected.
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Tax Credits (TC) | 6 million families, including
10 million children.
| Admin costs £467 million. This is equal to a cost of 2.78 pence for each pound paid out.
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Child Benefit (CB) | 7.45 million families, including 13.2 million children.
| Admin costs £116.4 million (including Child Trust Fund). This is equal to a cost of 1.17 pence for each pound paid out.
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| * These are the end to end total costs for each of the processes, this means all activity on these taxes including processing, customer contact, debt management and banking, compliance activity etc (some of this spend is therefore discretionary). It also includes an apportionment of the Department's overheads. Figures based on 2005-06.
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| ** Also 0.2 million people pay NI voluntary contributions, not included in the above figures.
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Question 2: What formal systems do you have for gathering customer
feedback:
| System | Yes/No |
Cost Per Annum** |
| Feedback facility on HMRC Website | Yes
| This is included in the annual maintenance costs of running the HMRC website. We cannot provide an accurate estimate for the feedback element—however, it is expected to be minimal.
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Exit Surveys (ES)* on:
Self Assessment
PAYE
Tax Credits
Child Benefit
| Yes Yes No N/A | This is included in the annual maintenance costs of running our Online Services. We are not able to provide an accurate estimate for the Exit Survey element. However, we have looked into launching a new exit survey for an existing Online Service and the cost estimate was approx. £93,000.
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Annual Customer Service Survey*** |
Yes | £500,000 per annum. We survey 19,000 people across the 13 customer groups covered in the annual Customer Service Survey.
There is also an in-year Customer Service Survey which takes place each March, and covers 7 of the 13 customer groups from the annual survey. This costs £185,000 per annum.
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Contact Centre Customer Service Survey.
| Yes | £75,000 per annum
|
Customer Focus Groups: | Yes
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Employer Consultation Forum (& subgroups)
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IREEN (Inland Revenue Electronic Exchange Network)Working Together
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Business Tax Forum |
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Admin Burden Advisory Board |
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Agents and Advisors Strategy Steering Group
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Operations Consultative Committee |
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Capital Gains Tax Review Group |
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International Accounting Standards Steering Group
| | |
Joint Alcohol and Tobacco Consultation Group
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Joint Customer Consultative Committee
| | |
Joint VAT Consultative Committee |
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Large Corporates Forum |
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Audit & Pension Schemes Services Joint Working Group
| | |
Pensions Industry Working Group |
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The Oil and Gas Industry Direct Tax Forum
| | |
Tax Law Rewrite Project |
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Online Services Helpdesk referral via EARS (Extended Action Request System)
| Yes | |
Online Services Helpdesk referral via Email
| Yes | |
e-Customer Support Helpdesk referral via Email
| Yes | |
Feedback gathered at Employer Talks |
Yes | |
Feedback gathered at Business Advice Open Days
| Yes | |
| * Exit Surveys are currently available on SA, PAYE, Corporation Tax and Stamp Taxes Online Services. An exit survey for our new Pension Schemes Online Service is scheduled to "go live" in Release 2 in April 2007.
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| ** Cost per annum is difficult to determine as the majority of the systems we have in place involve the re-direction of feedback by a member of HMRC staff.
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| *** In addition we run a central research programme for HMRC which supports a range of ad hoc/one off surveys and qualitative research projects (including focus groups and depth interviews) with HMRC customers to the value of a further £1.8 million per annum.
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1. From 6 April 2006 to 28 December 2006 we received
and dealt with 23,178 items of customer feedback for all Live
Online Services (the HMRC Website, SA, PAYE and Tax Credits accounted
for 82.6% of these). We also received and dealt with 35,125 completed
exit surveys for Live Online Services (SA and PAYE accounted for
97.8% of these).
Question 3: Which systems are the most effective?
2. One of the most effective methods of gathering customer
feedback for any of our Live Online Services (but specifically
PAYE and SA) is through Exit Surveys and the HMRC Website Feedback
Facility. However, this feedback does not necessarily tell us
much about the subsequent customer experience once a return has
been submitted online. Customer surveys provide us with feedback
from a representative cross section of the customer base and allow
us to look at the views/experiences/behaviour of different kinds
of customers dealing with different aspects of HMRC services.
Of course, they can only provide information on the questions
posed—so to ensure value for money surveys need to be designed
by people with a good feel for the key issues at the outset. By
contrast, focus groups (and/or depth interviews) take a more open
and exploratory approach to looking at users experiences and behaviour
and the underlying beliefs and motivations that influence them.
This kind of information cannot always be extrapolated to the
wider population in the same way survey results often can.
3. We focus on broader measures of customer experience
than "satisfaction" alone, because the general nature
of overall satisfaction measures can sometimes disguise specific
problems and achievements, and leave unanswered, or even unasked,
questions.
Question 4: Can you identify any changes made as a result of
gathering user feedback?
4. There have been a number of changes made as a result
of customer feedback. The majority have been for Stamp Taxes Online
and Corporation Tax Online. However, we have also seen changes
made to VAT Online and to the HMRC Website. It is worth noting
that significant changes do not usually happen purely as a result
of customer feedback from one source. Action would normally be
prompted by information derived from a range of sources (including
our own front line staff). An example of an initiative being introduced
in response to feedback from a number of sources (including the
Customer Service Survey) is the current Agents Helpline Pilot
in Customer Contact Directorate—all the feedback pointed
to the benefits of handling this customer group differently. The
pilot is producing some interesting and unexpected results and
will be reviewed in due course. Improvements to the VAT registration
process are partly a response to feedback from customers about
delays in getting a VAT number but also a result of setting a
target within the PSA to improve completion rates.
5. We have made a number of practical improvements to
agent customers (and their clients) resulting from feedback through
Working Together—for example, changes to PAYE Coding Notices
and notification of Employer Compliance visits.
For Self Assessment:
6. The PDF attachment facility, which allows agents to
attach more information (eg accounts) to customers' returns, was
launched as a result of customer feedback received from either
direct contact exercises or from "working together"
groups.
For PAYE:
7. In response to a number of customer suggestions captured
online, HMRC has initiated a full review of the Data Provisioning
Service (DPS). We arec urrently working with external representatives
from the Employer Consultation Forum and with our IT service provider
to consider what can be done to improve the service and better
meet customer needs.
Question 5: If you undertake user surveys how often are they
repeated, and how much is spent on each survey?
8. The annual Customer Service Survey covering 13 customer
groups is undertaken in November each year. We also conduct smaller,
in-year surveys across fewer customers groups for specific purposes.
The Contact Centre Survey is a continuous survey with a range
of customers being interviewed each month (within two weeks of
their call). The exit surveys are static and our customers are
given the option to complete one each time they log out of the
service. Our Online Services team occasionally carries out bespoke
surveys, the most recent being an insight into what the customer
expects from our online service. The central research programme
referred to at 2 above also carries out one-off surveys from time
to time.
Question 6: What targets for customer service, if any, are
in place?
9. Our second Public Service Agreement objective is to
"improve customer experience, support business and reduce
the compliance burden". The three targets underpinning this
Objective are all concerned with customer service; Key Indicators
within each target set out what is to be measured as "indicative"
of performance against the target:
— Target 5—Respond accurately and completely
to requests for advice:
— by 2007-08, increase to at least 80% the proportion
of individuals and businesses who said they achieved success at
first point of contact;
— by 2007-08, increase to at least 90% the accuracy
and completeness of information and advice given and actions taken
in respect of contact.
— Target 6—Provide simple processes that enable
individuals and businesses to meet their responsibilities and
claim their entitlements easily and at minimum cost:
— by 2007-08, increase to at least 90% the proportion
of small businesses that find it easy to complete their tax returns;
— by 2007-08, demonstrate a measurable improvement
in new and growing businesses' ability to deal correctly with
their tax affairs including increasing the proportion of applications
for VAT registration that are complete and accurate to 50%;
— by 2007-08, increase to at least 85% the proportion
of individuals who find their SA Statements of Account, PAYE Coding
Notices and Tax Credit Award Notices easy to understand.
— Target 7—Deal effectively and appropriately
with information provided, so that levels of contact are kept
to a minimum:
— by 2007-08, increase to at least 95% the rate
of accuracy achieved in administering SA, PAYE, Tax Credits and
NICs;
— by 2007-08, increase to 35% the percentage of
SA tax returns received online;
— by 2007-08, increase to 50% the percentage of
VAT returns filed online.
10. Our annual customer satisfaction survey measures
our performance against three of the indicators for these targets:
— individuals and businesses who said they achieved
success at first point of contact;
— small businesses that find it easy to complete
their tax returns;
— individuals who find their SA Statements of Account,
PAYE Coding Notices and Tax Credit Award Notices easy to understand.
11. We also measure the accuracy and completeness of
the information and advice we give from a representative sample
of telephone calls to our contact centres and post received from
the public.
12. Several of the targets which underpin our other two
PSA objectives also have a customer service element. Details are
contained in the HMRC Annual Report.
Question 7: Do you have a complaint handling unit, or are complaints
handled where they are received?
13. Each Business Unit (eg Tax Credit Office) is responsible
for handling its own complaints and the Head of Business Unit
is directly accountable to the HMRC Executive Committee for performance.
Handling systems are designed to meet the requirements of the
particular business and can range from a single centralised team
to a number of regional teams. We find that making Business Units
accountable encourages staff to take ownership of the complaint—many
can be resolved quickly and informally—and supports lesson
learning. Safeguards are provided by access to a free independent
adjudication service.
14. Consistency across HMRC is achieved through common
policy objectives and handling standards that are set, communicated
and monitored by the central HMRC Complaints Management Team (CMT)
in the Customer Contact Directorate. The CMT owns and develops
the department's complaints and redress policy and processes.
They liaise with the Adjudicator, the Parliamentary Commissioner
for Administration (the Ombudsman), the Chairman's Private Office
and other Government Departments.
For PAYE/SA
15. The most straightforward complaints are dealt with
by the operational unit where they are received. Most of these
are resolved quickly and informally. More complex complaints are
dealt with by dedicated complaints teams. Some of the most serious
complaints are passed to special complaints teams within the Complaints
Management Team in Customer Contact Directorate.
For Tax Credits
16. We have a dedicated complaints handling team which
forms part of the Tax Credit Office (TCO) Customer Support Unit.
All complaints are allocated to a caseworker whose name and contact
details are given to the customer. The caseworker is then responsible
for responding and keeping the customer updated about the progress
of their complaint.
For Child Benefit
17. The more straightforward complaints are dealt with
by the operational area where they are received. More complex
complaints are dealt with by the Complaints Team within the Customer
Relations Unit in Child Benefit Office.
Question 8: How many full time equivalents are involved in
complaint handling, and at what grades?
18. All staff who deal with post or have contact with
customers will handle straightforward complaints.
19. In addition there are staff whose duties have a specific
focus on handling formal complaints from individuals. Some of
these staff also have other duties within processing or as managers.
The full time equivalents (rounded to nearest whole numbers) are
shown below.
| Grade | FTE |
| Grade 7 | 3 |
| Senior Officer | 5 |
| Higher Officer | 42 |
| Officer | 451 |
| Assistant Officer | 251 |
| Admin Assistant | 31 |
Totals | 783
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Question 9: Do you have an internal review process for dealing
with complaints? If so, how does it operate?
20. Yes, each regime has its own internal review process.
Where a complainant is not satisfied with the response from HMRC,
the complaint will be reviewed. In addition, we provide a free
adjudication service for those complainants who remain dissatisfied
with our handling of their complaints. Dame Barbara Mills QC is
the current Adjudicator.
For PAYE/SA
21. Quality checks in respect of formal complaints are
in place in some parts of PAYE SA Processing. We understand the
need to learn and develop our staff and processes. Quality standards
for the processing of our formal complaints are under review nationally.
For Tax Credits
22. All complaints are dealt with in line with Customer
Support Unit's (CSU) internally set quality standards. CSU's assurance
team independently review the quality of our complaints handling
against this quality standard. Each month the assurance team check
a sample of complaints that have been cleared by letter or telephone.
The sample includes complaints that have already been checked
by managers in line with our risk-based checking policy and complaints
that have not been the subject of a management check. Senior managers
also conduct assurance programmes which involve a retrospective
review of cases. From the results of these assurance checks we
are able to measure the accuracy and quality of our complaints
handling and identify learning requirements and/or areas for improvement
in our complaints handling process. We use this information to
inform the CSU business plan generally and our learning plan in
particular.
For Child Benefit
23. We have an internal review process for dealing with
complaints. We hold workshops to review our complaints handling
procedures, and identify and implement improvements. We act on
the concerns raised by our customers and routinely feedback lessons
learnt to operational business areas. We are working more closely
with Tax Credit Office in all areas including sharing best practice.
24. We send customers who have complained leaflet COP1
which explains how we set about putting things right. If the customer's
complaint cannot be settled to their satisfaction at the first
point of contact they can write or speak to the Customer Service
Manager of the business area that looks after their Child Benefit
account. If the customer is still unhappy they can ask the Child
Benefit Director's Office to review their complaint. If the customer
is not happy with the Director's response they can ask the Adjudicator's
Office to look into matters for them.
25. If at any time the customer is not happy with the
service they have received from the Adjudicator or with the handling
of their complaint they can ask their MP to refer their case to
the Parliamentary Ombudsman.
Question 10: Do you do any analysis of complaints to inform
service delivery and design?
26. Yes. Each Business Unit records and analyses all
complaints, establishing root causes and monitors trends to identify
opportunities for business improvement. We use a Department-wide
HMRC Complaints and Correspondence System (CCS) to record complaints
received and cleared and also high level details of why customers
complain. This system is currently being upgraded and replaced
and the new system (e-CCS) will be rolled out at the end of February
2007.
For PAYE/SA
27. We record all our complaints and monitor trends.
Individual feedback processes are in place. In this way we are
looking to develop our staff and processes as well as dealing
with complaints from customers.
For Tax Credits
28. The TCO maintains an independent database in CSU
that is used to produce monthly information on the top five causes
of complaints to the TCO and high level analysis of the processes
that are leading to complaints. This enables us to identify areas
for improvement.
For Child Benefit
29. We routinely analyse 10% of complaints and reflect
the results in a monthly report and give specific advice to Customer
Service Managers where a complaint could have been handled better.
This is distributed throughout the business along with generic
"Handy Hints" on that month's findings. We also collate
results of key and operational targets, trends, volumes and process
improvements in the monthly Complaint Statistics Performance and
Analysis Report which is distributed throughout the business.
This information is also published in National Statistics. We
meet quarterly with complaints managers across HMRC to discuss
complaint handling and share best practice.
January 2007
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