A HMRC insider has given a damning verdict of the revenue’s ability to collect money and respond to queries as a result of cuts.

The serving tax officer, who’s been with HMRC for ten years, was interviewed on BBC Radio 4 and painted a bleak picture of an under-resourced organisation.

When asked how big the problems are at HMRC, the unnamed officer, said: “It’s massive, absolutely huge. HMRC hasn’t been fit for purpose for a very long time and it’s now at melting point.”

She goes on to detail the problem of ‘atrocious’ computer systems developed by people with no knowledge of accounting or tax. As for customer service? How about a million pieces of unanswered posts, understaffed call-centres and senior managers with ‘heads in the sand’?

As a result, their ability to collect unpaid taxes has been seriously hampered (the department itself admits that at least £30-40 billion remains uncollected) whilst some people may be paying too much tax.

What a mess.

Such revelations illustrate how important it is for freelancers, contractors and small businesses to have a good accountant. A good online accountancy service can ensure that you are constantly on top of your finances, and therefore don’t need to worry about the possibility of HMRC’s woes affecting you.

You can listen to the interview here.