Is It Worth Complaining About HMRC? Adjudicator’s Office Process

When taxpayers experience delays, errors, or poor service from HMRC, it can be very frustrating. Many people find themselves waiting on hold for hours, receiving incorrect information, or dealing with unresolved problems. This raises the question: Is it worth making a formal complaint, and what happens if you do? We discuss the circumstances under which you might want to escalate your issue, outline the structure of HMRC’s complaint process, and explain how the Adjudicator’s Office offers independent oversight.

Understanding HMRC’s Complaint Structure

HMRC operates a two-tier internal complaint process before a case can be escalated externally:

• Tier 1: Your complaint is reviewed internally by the department responsible for the issue.
• Tier 2: A different HMRC team conducts a fresh review, often referred to as a “final response.”

Only after these two stages can your case be referred to the Adjudicator’s Office (AO) for an impartial, independent review.

The Role of the Adjudicator’s Office

The AO exists to handle complaints about how government departments, such as HMRC, manage their services. It does not review tax decisions or legal disputes, but rather focuses on whether HMRC followed fair processes and treated the taxpayer reasonably.

Key powers include:

• Recommending apologies where appropriate.
• Suggesting changes to internal processes.
• Recommending financial redress if the complaint involved loss, stress, or inconvenience.

What the AO Can and Cannot Do

What it can investigate:

• Administrative errors or service failures.
• Excessive or unexplained delays.
• Misleading or poor advice.
• Process mishandling or failure to apply policies fairly.
• Inappropriate staff conduct.
• HMRC’s misuse of discretion.

What it cannot do:

• Overturn or revise HMRC tax decisions.
• Act as an alternative to legal or tribunal processes.
• Enforce decisions (its recommendations are advisory).

Complaint Eligibility and Timeframe

To refer a complaint to the AO:

• You must have completed both stages of HMRC’s internal process.
• Your AO complaint must be filed within six months of receiving the second-tier decision.

Once accepted, the AO review typically takes three to six months; however, complex cases may require longer processing times.

What to Expect: Outcomes and Compensation

Not every case results in a favourable ruling, but many do. For example:

• A notable percentage of complaints are either fully or partially upheld.
• Where appropriate, the AO may recommend financial compensation, particularly for financial losses, distress, or unnecessary costs.
• Typical compensation awards are modest, often ranging from £100 to £400, depending on the level of inconvenience or loss.

Is It Worth Complaining?

Filing a complaint can be worth it if:

• You’ve experienced avoidable delays, poor service, or factual errors by HMRC.
• HMRC failed to follow its policies or acted unreasonably.
• You suffered financial or emotional distress as a result.

However, the process can be time-consuming, requiring evidence, persistence, and patience. It’s not ideal if your primary concern is speed or if you’re disputing tax decisions rather than administrative mishandling.

Practical Considerations

Before complaining:

• Gather documentation, including written correspondence and evidence of financial impact.
• Be realistic about the likely outcomes: the process may yield only small compensation or procedural corrections.
• Consider whether appealing to a tax tribunal or using HMRC’s Alternative Dispute Resolution might be a better fit for your issue.

For those who feel let down by the system and are willing to navigate the process, it can lead to meaningful redress and procedural accountability.