HMRC has been forced into an embarrassing climbdown on plans to close the Self-Assessment, VAT and PAYE helplines from early April until September this year. HMRC has now confirmed that these helpline changes have been abandoned following feedback from many concerned stakeholders, including MPs, accountants and members of the public. This means that the helplines will remain open as usual for the time being.

However, these moves indicate that a significant shift towards online self-service options will become the norm in the longer term. HMRC has also said that they will continue encouraging customers to self-serve where possible and access the information they need more quickly and easily by going online or to the HMRC app, which is available 24/7.

HMRC’s Chief Executive said:

‘Making best use of online services allows HMRC to help more taxpayers and get the most out of every pound of taxpayers’ money by boosting productivity.

Our helpline and webchat advisers will always be there for those taxpayers who need support because they are vulnerable, digitally excluded or have complex affairs.

However, the pace of this change needs to match the public appetite for managing their tax affairs online.

We’ve listened to the feedback and we’re halting the helpline changes as we recognise more needs to be done to ensure all taxpayers’ needs are met, whilst also encouraging them to transition to online services.’

Hopefully, this post will be of help to individuals that find themselves in debt and are struggling to keep up with repayments.

It’s interesting to consider how easy it is to get into debt and how difficult to get out of debt.

In times of rising prices and high interest rates the temptation to use credit cards or other high interest charging loans to manage expenditure seems like a short-term solution that provides a simple way to balance the books.

Unfortunately, when you take out a loan or use a credit card rather more than you generally do, then you are effectively mortgaging your future income to cover the repayment of the loans and the interest charges.

The Insolvency Service (TIS) seem to be waking up to their responsibilities and on 21 March 2024, they issued a news story entitled:

“Don’t feel alone: find out the first steps in the journey out of debt”

 

Neil Sutton, a Senior Leader with TIS said:

“It can be difficult to see your way out of a debt cycle, and it’s absolutely not an easy step to take by yourself.

“So, working with debt advisers is important, to help you understand the implications of any solution you decide to enter.

“The government also offers a scheme called Breathing Space, which is administered by the Insolvency Service. Breathing Space lasts for 60 days, during which the people you owe money to can’t take any action against you, and interest and charges are frozen. It allows you time and headspace so you can work with a debt adviser to plan a suitable financial solution.”

More about Breathing Space

Neil continued:

“Problem debt can impact people’s physical and mental health. Breathing Space allows you to turn off that noise and work with a debt adviser to explore suitable solutions for you.

“Breathing Space itself is not a solution to debt, but a tool to help you deal with it. A debt adviser will make sure that it’s right for you.

“During a Breathing Space, lots of people do budgeting with the help of their debt advisers or see if they can access other benefits. If there’s a way forward that doesn’t involve insolvency solutions, that’s what debt advisers will help you look at.

“As with DROs, the Breathing Space scheme is delivered in partnership with the debt advice sector. ”

Useful links

If you need help, take a look at the following links published by TIS:

• People seeking any of these options should first speak to a debt adviser – which can be accessed free of charge via MoneyHelper.
• For details of options for dealing with debt, see Options for dealing with your debts: Overview – GOV.UK (www.gov.uk)
• Check how you can pay off debt and contact a free, expert debt adviser here: Check how you can deal with your debts – GOV.UK (www.gov.uk)
• For more information about DROs, see Options for dealing with your debts: Debt Relief Orders – GOV.UK (www.gov.uk)
• For more information about IVAs, see What you need to know about Individual Voluntary Arrangements (IVAs) – Insolvency Service (blog.gov.uk)
• For more information about bankruptcy, see: What you need to know about bankruptcy – Insolvency Service (blog.gov.uk)
• If you are in Scotland there are different options available. For details see here: Accountant in Bankruptcy – Scotland’s Insolvency Service – Explore Various Debt Solutions (aib.gov.uk)
• The government announced changes to DROs in the Spring Budget in March 2024, to make sure that those who most need support can access help. Chancellor Jeremy Hunt announced that the £90 fee for DROs would be abolished from 6 April 2024.