Research

This section contains research published by Analysis, HM Revenue & Customs. Analysis is a multi-disciplinary group comprising social researchers, economists, operational researchers and statisticians. The department's research programme is aimed at supporting evidence-based policy making and its evaluation of the impact of implemented policies, as well as supporting its day to day business.

Activities currently funded by HMRC

Latest developments and news

HMRC and ESRC to host a joint International Conference on Institutional Taxation Analysis - 21/22 September 2009

This event is jointly hosted by HMRC and the Economic and Social Research Council.

The International Conference on Institutional Taxation Analysis is designed to showcase HMRC analytical work and research methods, raising awareness of the work done by analysts in the department while exposing this work to external review from experts in other tax administrations and academia. It is also intended to increase HMRC's awareness and use of relevant analysis and research being conducted by other tax administrations, academics and other experts. By fostering relationships and dialogue between HMRC analysts, their counterparts in other tax administrations, the academic community and research providers we hope to facilitate a productive exchange of ideas, approaches and expertise.

Attendance at the International Conference on Institutional Taxation Analysis hosted by HMRC and ESRC is invitation only. Full details can be found on the conference website. (Opens new window)

HMRC sponsorship of externally generated research proposals

HMRC is introducing an initiative whereby academic and research experts can formally propose research ideas to the department and bid for financial sponsorship. This process will allow a wider network of experts to influence the development of HMRC's evidence base and incorporate recent theoretical and methodological advancements.

Further information is available on formal proposals.

HMRC conference on taxation research June 2006

One-day conference focusing on the methodology and analytical tools needed for taxation research. In the role of supporting HMT on tax policy, and HMRC policy, compliance, customer experience and performance/efficiency.

Listed below these were the presentations at the conference:

HMRC Research Report Series

Research report 1

Research report 2 - research into the Enterprise Investment Scheme and Venture Capital Trusts

Government summary of key WFTC/DPTC research findings

Research report 3 - Working Families' Tax Credit and Disabled Person's Tax Credit

Research report 4 - Working Families' Tax Credit and Disabled Person's Tax Credit: A survey of employers

Research report 5 - evaluation of the Disabled Person's Tax Credit

Research report 6 - evaluation of the Disabled Person's Tax Credit

Research report 7 - the childcare tax credit element of Working Families' Tax Credit

Research report 8 - Self Assessment pilots 2003/4

Research report 9 - individuals' donations to charities and their use of tax relief

Research report 10 - The Inheritance Tax process - a survey of customer satisfaction

Research report 11 - qualitative research into Enterprise Management Incentives

Research report 12 - Research and Development Tax Credits survey

Research report 13 - qualitative research for the review of links with medium sized businesses

Research report 14 - analysis of the impact of the tax system on the cash flow of small businesses: a report for HMRC

This report 14 (PDF 2.2MB) presents evidence on the effects of the timing of taxation payments on the cash flow of small firms. Specifically, it seeks to examine the effects of the timing of taxation payments, both negative and positive, on cash flow; identify which particular types of businesses are affected; the effects of taxation according to different types of taxation (VAT, Corporation tax, PAYE/NICs, Personal taxation); and the take-up of government initiatives related to taxation payments.

Research report 15 - tracking income: how working families' incomes vary through the year

Research report 16 - evaluation of the Urban White Paper fiscal measures

Research report 17 - employer's experience of the Student Loan Deductions (SLD) system

Research report 18 - a baseline survey at the inception of the Child Trust Fund

Research report 19 - Feasibility Study for potential econometric assessment of the impact of R&D tax credit on R&D expenditure

Research report 20 - Agents and HMRC Online Services

Research report 21 - payments and filing behaviour of new taxpayers

Research report 22 - Self Assessment Tax Calculation Guide

Research report 23 - monitoring of the reform of the income tax and National Insurance rules for Employer-Supported Childcare: A study of provision and experiences of employers

Research report 24 - Solicitors and Licensed Conveyancers experiences of recording stamp duty

Research report 25 - research on Trusts: experience of setting up and running Trusts

Research report 26 - evaluation of the changes to Capital Gains Tax since 1998

Research report 27 – Survey to establish awareness and take-up of the VAT Cash Accounting Scheme

Research report 28 - The Customer Experience of the Re-Engineering Compliance Pilots

Research report 29 - Charitable Donations by Wealthy People

Research report 30 - Large groups' tax departments: factors that influence tax management

Research Report 31 - Researching the Very Wealthy: Results from a Feasibility Study

Research Report 32 - The relationship between HM Revenue & Customs, its customers and the voluntary and community sector

HM Revenue & Customs commissioned an independent research organisation to provide an insight into how and why a sector of its customer base use VCS organisations as a means of accessing HMRC services. The work intends to inform and support HMRC to deliver best practice models in working with and through the VCS to deliver efficient and socially inclusive public services.
The study investigates the following:

  • The types of people that use VCS organisations as a means of accessing HMRC services,
  • The barriers that prevent customers from contacting HMRC directly, and
  • How the relationship between the VCS and HMRC can be strengthened in the future
  • Full Report 32 (PDF 333K)

Research Report 33 - Tax-advantaged employee share schemes: analysis of productivity effect

An econometric analysis of the impact of tax-advantaged share schemes on UK company performance. The research focuses on the impact of Approved Profit Sharing (APS), Save As You Earn (SAYE), and Company/Discretionary Share Option Plan (CSOP/DSOP) schemes.

Research Report 34 - HMRC Customer Service Survey results 2006, 2005 and 2004

Research Report 35 - Education, information and support needs of customers aged 50-69

Research Report 36 - Registration for Self Assessment Online in 2006

Research Report 37 - Users of Self Assessment Online in 2005

Research Report 38 - Saving in ISAs

Research Report 39 - Encouraging take up of Stamp Duty Land Tax online filing among solicitors and licensed conveyers

Research Report 40 - exploring the early effects of the New Construction Industry Scheme (New CIS)

Research Report 41 - Enterprise Management Incentives (EMI) Evaluation Survey: Use of EMI and its perceived impact

Research report 42 - relationship between national non-domestic rates and commercial property rents

Research Report 43 - A Review of Research Evidence on Factors Influencing the Renovation of Business Premises in Disadvantaged Areas

Research Report 44 - Study of the impact of the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs) on company performance

Research Report 45 - Key barriers to the Adoption of Gift Aid

Research Report 46 - evaluation of the redesigned main tax return

HM Revenue & Customs (HMRC) commissioned an independent research organisation to evaluate the impact of the redesigned main tax return pilot on customer experience. The work intends to inform and support HMRC's implementation of the redesigned main tax return on a national basis.

The study investigates the following:

  • the impact of the redesigned tax return on customer experience
  • customers' views and satisfaction with the redesigned tax return
  • the completion time and other costs associated with the redesigned tax return
  • customers' views on, and preferences relating to, self calculation
  • any potential improvements to the redesigned tax return and its accompanying literature
  • the types of taxpayer who benefit most from the redesigned tax return
  • Full report 46 (PDF 368K)

Research Report 47 - The Disability Element of Working Tax Credit

HMRC commissioned independent research to examine the experiences and characteristics of people who receive, or are eligible to receive, the disability element of Working Tax Credit (WTC). The findings showed that respondents considered WTC and the disability element to provide a better standard of living than out of work benefits and tended to feel that there was no stigma attached to claiming WTC. In terms of decisions relating to work, respondents' health was the deciding factor, however, the financial support provided by WTC and the disability element acted as a financial incentive to move into work and also to stay in work by allowing respondents to reduce their hours in order to manage their disability. Overall, respondents had a basic understanding of the disability element of WTC and who could receive it, although awareness of the disability element was low among those who were not claiming it. A lack of awareness of the disability element was the primary reason for eligible respondents not claiming and concern with overpayments was an additional barrier. Respondents tended to be aware of the requirement to report changes in relation to their income and household situation but only demonstrated awareness of the need to report a change in their disability when prompted.

Research Report 48 - Research to explore the feasibility of collecting in-year estimates of income from tax credits claimants

HMRC commissioned independent research to investigate how willing and able tax credits recipients were to provide an estimate of their household income prior to receiving their P60s at the end of the tax year, and how accurate this estimate was. The findings showed that a majority of respondents contacted for the research were willing to give an estimate of income and around nine in ten of them were able to provide an estimate of their household income within a given range. However, respondents were less able to give an estimate of household income when asked for an exact figure, and had more difficulty in estimating their partner's income than their own. Self-employed recipients of tax credits and those on variable hours or income found it more difficult to give estimates due to variable incomes.

Research Report 49 - Exploring the Key Influences on the Tax Credits Claimant Population

HMRC commissioned independent research to explore the experiences and attitudes of a wide range of tax credits claimants in order to determine whether it was possible to group claimants by shared experiences and behaviours to tailor services in a more sensitive way. The research showed personal circumstances, attitudes/behaviours, and previous life experiences combined to influence claimants' views and experiences of the tax credits system. Complex interactions between these factors suggested that it was not possible to create distinct groups of tax credits claimants. The research found strong positive support for the financial assistance provided by tax credits and they were viewed differently from other forms of state financial support in having no stigma attached. Satisfaction with the system was influenced by the impact tax credits were felt to have on household finances and whether claimants' had experienced any problems with the system. Respondents who had experienced an overpayment tended to view the tax credits system more negatively. The impact of tax credits depended on respondents' income and level of award; while those on the highest incomes reported no impact on living standards, tax credits made a crucial contribution to the cost of essentials such as food, housing and household bills for respondents on lower incomes. Tax credits had encouraged some claimants to move into work by providing a financial impetus to do so. However, in other cases tax credits had encouraged the status quo among those already in work who were reluctant to change their working hours for fear of complicating their claim. Tax credits had helped some mothers into work by providing help with childcare costs and had also been important for mothers who chose to stay at home by helping with the costs of bringing up a child.

Research Report 50 - Contact Centre Customer Satisfaction Survey 2005-6

Research Report 51 - Contact Centre Customer Satisfaction Survey 2006-7

Research Report 52 - Claimants' understanding and experience of the tax credits renewal process

Claimants understood the purpose of the tax credits renewals process and were generally aware of what they needed to do to renew their claim. Whether claimants renewed on time, just in time or late were related to the claimants' reliance on tax credits as well as their financial management style and organisational skills.

Research Report 53 - Exploring claimants' understanding of the tax credits system and the process of reporting changes of circumstance

Claimants understood the purpose of the tax credits renewals process and were generally aware of what they needed to do to renew their claim. Whether claimants renewed on time, just in time or late were related to the claimants' reliance on tax credits as well as their financial management style and organisational skills.

Research Report 54 - Evaluation of Enhanced Capital Allowance (ECA) for energy saving technologies

Report 55 - Charities, Assets and Residency Customer Satisfaction Survey

Research Report 56 – Pensions Taxation Reform: a baseline study of employers and the Financial Services Industry

Research Report 57 - Pensions Taxation Reform: a baseline study of individuals

Research Report 58 – Research to support the implementation of proposals in the Review of Links with Large Business

Research Report 59 – Evaluation of Tax-Advantaged All-Employee Share Schemes - Save As You Earn (SAYE) and Share Incentive Plan (SIP)

Research Report 60 - Methodological Review of Research with Large Businesses

Research Report 61 - The customer experience of online filing

Research to provide a detailed understanding of customer use, or otherwise, of HMRC's online transactions across VAT, Corporation Tax, Self Assessment and PAYE (Pay As You Earn). The work looks at the barriers to online filing, strategies for overcoming these barriers and the key issues contributing to customer satisfaction.

Research Report 62 - Research into Customer Perceptions of Compliance Interventions: Feasibility report

Research Report 63 - Late Payment of Tax: Motivations and Sanctions

Research Report 64 - Publication of Research into alternative approaches to obtaining information about income in retirement

Research Report 66 - Publication of research into National Insurance Deficiency

Research Report 67 - Publication of research into pre retirement communications

Research Report 68 - Publication of Research into Trivial Commutation

Research Report 69 - Two person partnerships: administrative burdens for tax compliance

Research to explore the potential impact on two-person partnerships of removing the obligation to provide a Partnership Tax Return. The research consisted of 42 qualitative in-depth interviews with two-person partnerships and agents.

Research Report 70 - The Extent and Nature of the Use of Computerised Accounting by Businesses to meet their VAT and Corporation Tax obligations

Research Report 71 - Agent Account Manager & Agent Dedicated Line Evaluation

This Report has not been published yet.

Research Report 72 - SME and Agent's Concept Test

This Report has not been published yet.

Research Report 73 - Phase 1 Self Assessment Guide research

This Report has not been published yet.

Research Report 74 - First Time experiences of business growth points

Research to explore how business owners interact with HMRC when undertaking a business task for the first time. The research examined interactions at four stages: New Business, New Employer, change of legal Status and VAT.

Research Report 78 - Tax Credits and Household Break-ups

In 2007, HMRC piloted a simplified process for handling the application of tax credits claims from customers who have had household break up. This report details the findings of the qualitative research HMRC commissioned as part of the evaluation of the pilot. The research included two groups of customers, those who experienced the pilot process and those from a 'control' group whose claims were processed using the then existing process. Overall, the pilot process was viewed positively by customers from both the pilot and'control'groups but some minor negative aspects were also highlighted.

Research Report 79 - Claimants' experiences and views of aligning Child Tax Credit and Child Benefit notification processes for births and their wider views of alignment and data sharing

Claimants of tax credits and Child Benefit have to report the birth of a new baby to both the tax credits and Child Benefit helplines. In 2007, HMRC piloted an aligned process which offered claimants the opportunity to report the new birth to both the Child Benefit and tax credits systems in one telephone call. This report presents the findings of independent qualitative research HMRC commissioned to explore the experiences and views of both the aligned and non-aligned processes of reporting the birth of a new baby. The extent to which claimants would like to see an aligned service extended to other changes of circumstances was also explored in the study.

Research Report 80 - Claimants' experiences of aligned tax credit and Child Benefit service relating to reporting education status

Claimants of tax credits and Child Benefit who have a child aged 16 or over have to report changes in the young person's educational status separately to both the tax credits and Child Benefit helplines. In 2007, HMRC piloted an aligned process designed to offer claimants the opportunity to update the information on their child's education status held on the tax credits and Child Benefit records during one single telephone call. This report presents the findings o6f the independent qualitative research HMRC commissioned to explore claimants' experiences and views of the aligned process. Claimants' views of the alignment of other Child Benefit and tax credits processes were also explored in the study.

Research Report 81 - Claimants' Experiences of the tax credits Reach out Renewals pilot

In August 2007, HMRC piloted the Reach out Renewals Service Improvement Module to help claimants renew their award on the telephone. HMRC commissioned independent research to find out about claimants' experience of the pilot and about their understanding of the tax credits renewal process in general. Overall, claimants were very positive about participating in the Reach out Renewals Pilot, and were pleased with the customer handling by the HMRC contact centre advisors.

Research Report 82 - Qualitative Research on tax Credits Customers' Experience and Views of the Health Check Pilot

In 2008, HMRC piloted a process whereby it contacted customers proactively in order to carry out a 'health check' on their award details. This report contains the findings of qualitative research HMRC commissioned as part of the evaluation of the pilot. Overall, customers had a positive experience of the pilot. However, they generally felt that there would be little change in their behaviour regarding notifying HMRC of changes in circumstances.

Research Report 83 - Research to explore tax credits claimants' experiences of the Assisted Claims pilots: Levels 2 and 3 summary report

HMRC commissioned independent research in 2008 to explore the views and ex6periences of the customers who took part in a pilot designed to help customers claiming tax credits for the first time. In total, six levels of assistance were offered on the pilot. This report outlines findings from research on two of the six levels - Level 2 where customers were invited to call HMRC back once they received the claim form and level 3 where HMRC arranged to call customers back when they had received the claim form. Two groups of customers were included in the research - those who were offered the pilot process and those from a'control'group. Overall, customers from both the 'pilot' and 'control'groups expressed positive views on the pilot process.

Research Report 84 - A qualitative investigation of the childcare element of Working Tax Credit

HMRC commissioned independent research to explore claimants' knowledge and understanding of the childcare element (CCE) of Working Tax Credit (WTC) and the role the CCE plays in decisions relating to work and childcare. Qualitative interviews were carried out with recipients of CCE. The research explored the experience of claiming CCE. The impact that CCE had on ability to work, working patterns and choice of formal over informal childcare were also considered.

Research Report 85 - Cognitive testing to investigate customers' understanding of processes relating to the childcare element of Working Tax Credit (WTC)

HMRC commissioned independent research to explore the specific issues faced by claimants of the childcare element of WTC when making their initial claim and in updating any changes in childcare costs to their on-going awards. Cognitive testing with claimants revealed that providing the required information was not as straightforward as claimants perceived it to be. The use of current guidance was explored; suggestions for improvements to the claim form and ways to assist customers with making a claim were also identified.

Research Report 86 - Triggers and barriers to the take-up of Working Tax Credit among those without dependent children

HMRC commissioned independent research to explore the reasons for the low take-up of Working Tax Credit (WTC) amongst those without dependent children. Qualitative interviews were carried out with claimants and eligible non-claimants. There were clear differences between these two groups which could influence their take-up of tax credits. Triggers and barriers to claiming WTC were identified along with strategies for encouraging the take-up of WTC.

Research Report 87 - Evaluation of the Review of Links with Large Business

Publication of an evaluation of the impact of changes implemented following the 2006 Review of Links with Large Business. These are two reports which present findings of independent research commissioned by HMRC exploring large business customers' experience of their relationship with HMRC and priority areas for improvement.

Research Report 88 - Publication of research by NIESR into modelling life-cycle savings behaviour

The paper, A Structural Dynamic Micro-Simulation Model for Policy Analysis, reports on a new model of long-term savings developed by National Institute of Economic and Social Research (NIESR) for HM Revenue & Customs and the Department of Work & Pensions. The research presents a detailed analysis of how changes in taxation and state benefits may affect household saving decisions within a life-cycle framework. Using the model they have developed along with detailed cross-sectional data on UK households, NIESR present results that include a number of interesting policy simulations. These include scenarios that illustrate the dynamic effects of a new low-cost pension scheme, changes in marginal rates of income tax, and increased life expectancy.

Research Report 89 - Extended Clearances Evaluation

Evaluation conducted by British Marketing Research Board (BMRB) on behalf of HMRC on the Non Statutory Business Clearance Service introduced in April 2008.

Research Report 90 - Customer Perceptions of Tax Compliance Checks

Ipsos MORI was commissioned by HMRC in October 2008 to undertake qualitative research with customers who had been the subject of a recent compliance check. The report identifies key drivers of customer satisfaction and includes findings on how customers would improve the compliance intervention process.

Research Report 92 - Individuals Prioritisation: An investigation into segmentation of the individuals customer base

Summary of research which grouped the UK adult (aged 16 plus) population into individual customer segments by attitude and behaviour towards compliance.

HMRC Working Papers

Working Paper 1 - modelling WFTC take-up

Working Paper 2 - did Working Families' Tax Credit work?

Working Paper 3

Working Paper 4

Working Paper 5

Working Paper 6

Working Paper 7

HMRC Staff Survey results