HMRC Dismissals for Gross Misconduct Hit Five-Year High
HMRC reports a surge in staff dismissals for gross misconduct, reaching a five-year peak. The increase coincides with declining customer service levels and growing taxpayer demands.
HM Revenue and Customs (HMRC) has reported a significant increase in staff dismissals for gross misconduct, reaching a five-year high in 2024. This development comes amid growing challenges for the UK's tax authority, which has been struggling to meet rising taxpayer demands and maintain service quality.
According to data obtained through a freedom of information request, 179 HMRC employees have been terminated for serious breaches of workplace conduct so far in 2024. This represents a 43% increase compared to 2020, when 125 staff members were dismissed for similar reasons. Gross misconduct, which can lead to immediate termination, encompasses a range of serious offenses, including:
- Bullying
- Theft
- Intoxication at work
- Damage to company property
- Gross negligence
- Actions potentially harmful to the organization
In the context of HMRC, such misconduct might also involve the unauthorized disclosure of sensitive taxpayer information or fraudulent activities using internal systems.
A recent case highlighted the severity of potential misconduct within the tax office. Earlier in 2024, an HMRC employee was sentenced to two years and four months in prison for defrauding taxpayers of £300,000 in child benefits. The individual falsely claimed disability status for three children and submitted fraudulent tax credit claims for 15 others, misusing confidential information accessed through work systems.
The 179 dismissals for gross misconduct in 2024 account for over half of the total 321 terminations at HMRC, which employs more than 65,000 staff. This marks a significant shift from 2020, when gross misconduct cases represented only 28% of all dismissals.
Steve Sweetlove, an expert from accountancy firm RSM, offered insight into the trend: "While the increase in dismissals for gross misconduct might appear concerning, it could indicate that HMRC is adopting a stricter approach to staff disciplinary matters. Given the critical role HMRC employees play in handling taxpayer data and collecting government revenues, instances of gross negligence are particularly serious, necessitating appropriate action when required."
This surge in dismissals coincides with a period of heightened scrutiny of HMRC's performance. The tax office has been grappling with declining customer service levels, answering only 66% of customer calls in the past year, falling short of its 85% target and down from 71% in the previous year.
"HMRC's service levels were at an all-time low after it received an unprecedented number of written submissions about the tax office's poor performance."
The challenges facing HMRC are multifaceted. The department, formed in 2005 through the merger of Inland Revenue and HM Customs and Excise, is responsible for collecting over £600 billion in tax revenue annually. It operates within the context of one of the world's most complex tax codes, spanning over 17,000 pages. The tax office has been undergoing significant changes, including the closure of local offices and the centralization of operations since 2015.
In response to these issues, an HMRC spokesperson stated: "As a large organization, we occasionally face staff behavior issues. We take all allegations seriously to maintain an inclusive, friendly, tolerant, and respectful work environment. Our employees must adhere to our code of conduct and the civil service code, with breaches investigated and potentially resulting in dismissal when necessary."
As HMRC continues to navigate these challenges, it is also investing in technological solutions, including AI and machine learning, to enhance tax compliance and improve service delivery. The coming years will be crucial in determining whether these efforts, combined with stricter internal policies, can address the current issues and restore public confidence in the UK's tax authority.
