HM Revenue and Customs (HMRC) dismissed 179 employees for gross misconduct in 2024, the highest number in at least five years, according to data obtained through a Freedom of Information request.
This represents a 43% increase from 2020, when 125 employees were dismissed for similar reasons, representing just 28% of all redundancies at the time.
The recent redundancies, which now make up more than half of the 321 redundancies at HMRC this year, reflect a firmer stance on disciplinary matters within the department, which employs more than 65,000 staff. Gross misconduct includes serious violations of conduct, such as bullying, theft, drunkenness, damage to company property, gross negligence or other actions that could harm the organization. Specific to HMRC, it could include unlawful disclosure of taxpayers’ sensitive information or fraud on government systems.
In one notable case, a tax employee was jailed for more than two years after defrauding taxpayers of £300,000 in child benefit by falsely claiming that three of her children were disabled and fabricating tax credit claims for a further fifteen children, using of data obtained through her. computer system at work.
Civil servants can also be fired for unauthorized access to government databases. For example, Louise Kelly, a 20-year veteran of the Department for Work and Pensions (DWP), was dismissed after inappropriately searching for her neighbour’s address in the ‘Searchlight’ database, which contains sensitive financial and health information. Her dismissal was upheld by an employment tribunal, underscoring the importance of robust policies to prevent abuse of such systems.
The DWP also reported 190 dismissals for serious misconduct in the 2023-2024 period, accounting for around 40% of all dismissals, compared to 221 the year before.
Steve Sweetlove of accountancy firm RSM noted that while the increase in dismissals for gross misconduct at HMRC might seem worrying, it could also indicate a tougher approach to enforcing standards of conduct. “Given the crucial role that HMRC staff play in handling taxpayers’ data and collecting revenue for the government, cases of gross negligence can be a very serious problem, so it is important that appropriate action is taken where necessary” , he said.
Michael Newman, employment law specialist at Leigh Day, added that gross misconduct is reserved for the most serious breaches and remains relatively rare. He stressed that what qualifies as gross misconduct can vary depending on the employee’s role, with fraud at HMRC being particularly serious.
The increase in redundancies comes as HMRC faces significant operational challenges, with customer service at ‘record levels’. The department managed to answer just 66% of customer calls last year, well below the 85% target and down from 71% in 2022-2023. Rising demand for HMRC services, driven by frozen tax thresholds pulling more taxpayers into higher rates, has exacerbated these problems.
The Public Accounts Committee criticized HMRC’s service levels earlier this year, describing them as the worst ever, following an “unprecedented” number of complaints about the tax service’s performance. Furthermore, at HMRC, levels of bullying and harassment are reported at 8%, while employee engagement is at 56%, the lowest within the civil service compared to a benchmark of 64%.
A government spokesperson acknowledged the challenges, but stressed that all large organizations experience staff behavior issues from time to time. “We take all allegations seriously to ensure we work in an inclusive environment that is friendly, tolerant and respectful,” the spokesperson said. “All our employees must ensure that, in addition to the Civil Service Act, they also comply with our code of conduct, which involves investigating and, if necessary, investigating breaches, which could potentially lead to dismissal.”
As HMRC prepares to receive additional funding for recruitment, the need for strong supervision and support for new recruits will be critical to maintaining standards and improving overall performance.