HM Revenue & Customs has announced a reduction in the hours that helplines will be available to the public for advice and assistance. This is a result of public sector budgets being cut by 25 percent, which has resulted in many services consequently reduced to save money. The plan to reduce their helpline opening hours could seriously affect contractors who are frequently only available to contact HMRC during evenings and weekends when they need to discuss problems or seek advice.

It is the belief of The Low Income Tax Reform Group that many minority groups will be affected by this decision and it will also an impact on the plans to move to online services. The group also believes that many low income families who are out working all day will not be able to access the helplines and this could lead to financial difficulties. HMRC plans to cut opening hours on a Saturday and abolish Sundays completely.

The chairman of The Low Income Tax Reform Group, John Andrews said:

“Some of these people will work long hours during the week and may only be able to sort out financial matters during unsociable hours or the weekend.”

It is feared that many contractors and freelancers who are working long hours during the week will not be able to reach HMRC for crucial advice regarding the payment of tax or legislation guidance, leading to problems with their finances. The decision to reduce helpline opening hours has been made as a direct result of public sector cuts, but The Low Income Tax Reform Group thinks that HMRC should open on Sundays as well as advertising the availability of online access.

Contractors are advised to contact a reputable umbrella company for advice on the latest legislation from HMRC such as IR35 legislation and expenses which are allowable.