This section contains research published by Analysis, HM Revenue & Customs (HMRC). 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.
This event was jointly hosted by HMRC and the Economic and Social Research Council.
The International Conference on Institutional Taxation Analysis was designed to showcase HMRC analytical work and research methods, raise 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 was 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 HMRC hope to facilitate a productive exchange of ideas, approaches and expertise.
The conference proceedings have now been published. Full details can be found on the conference website. (Opens new window)
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.
One-day conference focusing on the methodology and analytical tools needed for taxation research. In the role of supporting HM Treasury on tax policy, and HMRC policy, compliance, customer experience and performance/efficiency.
Listed below are the presentations at the conference:
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.
HMRC commissioned an independent research organisation to provide an insight into how and why a sector of its customer base use voluntary and community sector (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:
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.
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:
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.
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.
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.
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.
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 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 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.
This Report has not been published yet.
This Report has not been published yet.
This Report has not been published yet.
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.
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.
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.
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 of 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.
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.
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.
HMRC commissioned independent research in 2008 to explore the views and experiences 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 two where customers were invited to call HMRC back once they received the claim form and level three 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.
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.
HMRC commissioned independent research to explore the specific issues faced by claimants of the childcare element of Working Tax Credit 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.
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.
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.
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 HMRC 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.
Evaluation conducted by British Marketing Research Board (BMRB) on behalf of HMRC on the Non Statutory Business Clearance Service introduced in April 2008.
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.
HMRC, on behalf of HM Treasury, commissioned independent research to explore the possible effect on charitable donations of redirecting Gift Aid higher-rate tax relief from donors to charities. This research was undertaken by Warwick and Bristol universities.
Summary of research which grouped the UK adult (aged 16 plus) population into individual customer segments by attitude and behaviour towards compliance.
Summary of research to identify service gaps and recognise barriers preventing disabled customers from interacting fully with HMRC.
Summary of research to identify problems and recognise barriers to correctly running a PAYE scheme for employed carers.
The publication of HMRC's annual Customer Service Survey (CSS) 2007 results.
Publication of Stage Two of the Large Business Methodology Review. This involved qualitative research among large businesses and Ipsos MORI interviewers and recruiters to gain a fuller understanding of large businesses’ perceptions towards, participation in government sponsored research.
Publication of a paper which sets out a proposed design for a longitudinal business panel survey based on consultation with HMRC stakeholders and other organisations, as well as a literature review of relevant surveys.
The publication of the 2009 Large Business Customer Survey results and Public Bodies Customer Research. This consists of two reports presenting findings of independent research commissioned by HMRC exploring large business customers' experience of their relationship with HMRC.
