HMRC Sees Record High of Dismissals for Gross Misconduct

Dismissals for gross misconduct at HM Revenue and Customs (HMRC) have reached a five-year high, with 179 tax office employees terminated for serious breaches of workplace conduct in 2024 alone. This marks a 43 percent increase since 2020 and is the highest number recorded in at least five years, according to data obtained by The Telegraph through a Freedom of Information request.

Gross misconduct refers to behavior so severe that it can lead to immediate dismissal. This can include actions such as bullying, theft, intoxication, damage to company property, gross negligence, and other behaviors that could endanger the organization. In the context of HMRC, gross misconduct may also involve the unlawful disclosure of sensitive taxpayer information or fraud committed using company systems.

Earlier this year, for example, a tax office worker named Tracy Ashbridge was sentenced to two years and four months in prison after exploiting her position to defraud taxpayers of £300,000 in child benefits. Ashbridge falsely claimed that three of her children were disabled and submitted false tax credit claims for an additional 15 children. She accessed personal details from members of the public using her work computer to facilitate these fraudulent activities.

Of the 321 total dismissals at HMRC this year, the 179 employees fired for gross misconduct accounted for more than half. In contrast, in 2020, only 28 percent (125 out of 441) of all dismissals were attributed to gross misconduct.

Steve Sweetlove from accountancy firm RSM commented, “While an increase in gross misconduct dismissals may appear concerning, it could indicate that HMRC is adopting a stricter approach to staff disciplinary issues. Given the critical role HMRC personnel play in managing taxpayer data and collecting government revenue, instances of gross negligence are serious matters that warrant appropriate action.”

This spike in dismissals comes amid reports of declining customer service at HMRC, which has reached an “all-time low” due to increasing demand from taxpayers. Last year, the agency managed to answer only 66 percent of customer calls, falling short of its target of 85 percent and down from 71 percent in the previous year.

The Public Accounts Committee, a prominent group of MPs, noted earlier this year that HMRC’s service levels had plummeted, receiving an unprecedented number of written complaints regarding its performance.

An HMRC spokesman stated, “All large organizations will occasionally face issues with staff behavior. We take all allegations seriously to ensure we maintain an inclusive environment that is friendly, tolerant, and respectful.”