HMRC has seen a significant rise in dismissals for gross misconduct, reaching a five-year high.
- In 2024, 179 employees were dismissed for gross misconduct, marking a 43% increase from 2020.
- These dismissals now comprise more than half of all HMRC terminations this year, reflecting a stricter disciplinary stance.
- Reasons for dismissals include serious breaches such as theft, intoxication, and inappropriate access to sensitive information.
- The rise in misconduct cases comes amid substantial operational challenges and declining customer service levels at HMRC.
In 2024, HMRC dismissed 179 employees for gross misconduct, a sharp increase from the 125 dismissals in 2020. This rise represents a 43% increase and indicates a firmer disciplinary stance within the department, which employs over 65,000 staff.
Gross misconduct at HMRC includes serious breaches such as bullying, theft, intoxication, and damage to company property. Specifically, it can involve the unlawful disclosure of sensitive taxpayer information or fraud using government systems.
One notable case involved a tax office worker defrauding the taxpayer of £300,000 in child benefit by falsely claiming disabilities for her children and fabricating tax credit claims. She accessed details through her work computer system and was subsequently jailed for over two years.
Civil servants can also face dismissal for unauthorised access to government databases. Louise Kelly, a 20-year veteran of the Department for Work and Pensions (DWP), was dismissed after improperly searching for her neighbour’s address in a sensitive database. Her dismissal was upheld by an employment tribunal.
The DWP reported 190 dismissals for gross misconduct in 2023-24, a decrease from the 221 dismissals in the previous year. This underscores the severity and infrequent nature of such breaches.
Steve Sweetlove from RSM highlighted that the increase in gross misconduct dismissals at HMRC might indicate a stricter approach to upholding conduct standards. He noted the importance of addressing serious issues such as gross negligence, given HMRC’s role in handling taxpayer data and revenue collection.
Michael Newman, an employment law specialist at Leigh Day, explained that gross misconduct is reserved for the most severe breaches. He emphasised the seriousness of fraud within HMRC, given the department’s critical functions.
The rise in dismissals coincides with significant operational challenges at HMRC. Customer service levels have plummeted, with only 66% of customer calls answered last year, far below the 85% target. Rising demand for HMRC services and frozen tax thresholds have exacerbated these issues.
The Public Accounts Committee has criticised HMRC’s service levels, calling them the worst on record due to an unprecedented number of complaints. Reports indicate that bullying and harassment levels at HMRC are at 8%, while employee engagement is at 56%, the lowest compared to a civil service benchmark of 64%.
A government spokesman acknowledged these challenges, stressing the importance of maintaining an inclusive and respectful work environment. Strong oversight and support for new recruits will be crucial as HMRC prepares to receive additional funding for recruitment.
The increase in dismissals for gross misconduct at HMRC underscores the department’s stricter disciplinary measures amid significant operational challenges.
