Research and analysis

HMRC Brand Perceptions Research 2020

Published 18 July 2022

Research conducted by Populus for HMRC in 2020.

Disclaimer: The views in this report are the authors’ own and do not necessarily reflect those of HM Revenue and Customs.

1. Introduction

1.1 Background

Between March and September 2020 Populus conducted a multi-stage research project designed to provide HMRC with a detailed understanding of how the Department and its brand is perceived. This research was a new area of research for HMRC. The research was conducted in order to inform the direction of further research on public perceptions of HMRC and its reputation and brand. This research included a preliminary exploratory qualitative stage which helped bring out themes to explore further in the two following stages of research.

1.2 Research Aims

Research objectives included providing HMRC with:

• to build on existing evidence in order to establish a set of baseline measures regarding the HMRC brand and how it is perceived by the general public

• an understanding of what is influencing individuals’ perceptions of HMRC

• the ability to establish an ongoing programme of tracking research to monitor HMRC’s brand

1.3 Method

The research comprised of multiple research phases and incorporated:

• preliminary qualitative research (focus groups in England and Scotland)

• robust nationally representative online survey research

• key driver and implicit response test analysis

• follow-up qualitative research (online focus groups with residents of Wales and Northern Ireland and individual depth interviews with a range of individuals across the UK)

For the survey research, quotas were set and weights used to ensure the online sample was representative of the adult (16 plus) population of the UK in terms of gender, age, UK government office region and social grade.

It should be noted that the quantitative research was conducted online using an online research panel and therefore was not a fully randomised probability sample (though a random sample of the online panel was invited to participate). Care should be taken when using this research to make inferences regarding the broader population.

Additionally, qualitative research involves small samples and is not necessarily representative of the wider population.

1.3.1 Sample

Preliminary qualitative research

Populus conducted 4 pre-tasked qualitative focus groups in Glasgow and Birmingham as well as 8 qualitative depth interviews with customers who need extra help, higher income earners, additional taxpayers and those with complex tax situations.

Quantitative research

Populus conducted an online survey among adults in the United Kingdom, covering England, Wales, Scotland and Northern Ireland. The survey was nationally representative, with a sample of 3,012 respondents. The survey was available both in English and Welsh.

Follow up qualitative research

Populus conducted 2 qualitative online focus groups with people from Wales and Northern Ireland as well as 27 qualitative online video and telephone depth interviews with people with a mix of ethnicities, personal circumstances, age and location.

1.3.2 Fieldwork

Preliminary qualitative fieldwork ran between 2 March 2020 and 6 March 2020.

Quantitative fieldwork ran from 10 July 2020 to 22 July 2020.

Follow up qualitative fieldwork ran between 25 August 2020 and 10 September 2020.

The research programme was paused between April and July 2020 due to the coronavirus pandemic and connected restrictions.

2. Findings

2.1 Knowledge and awareness of taxation and HMRC

Knowledge about tax and the tax system was very limited. Knowledge of HMRC was also low – this impacted perceptions of it and its brand. For most, tax was not an issue they thought about in detail often, with the exception of self-employed people. The limited knowledge that people had of HMRC focused heavily on income tax – and many confused HMRC (and its responsibilities) with the ‘Government’ or the ‘Treasury’. Fewer associated HMRC with other taxes such as VAT or business tax and very few associated it with statutory payments. Very few thought spontaneously of HMRC’s role in international trade and customs, although upon learning about it, all believed it made sense for this to be part of HMRC’s responsibilities. Most did not know of HMRC’s support to families and individuals – and thought that these services are not communicated well enough. They called for greater communication about HMRC’s support available to people and said this information might improve their view of the Department.

The most common dealings with HMRC were by post – and many strongly associated HMRC with a brown envelope received through the door. Only a minority wanted a close relationship with HMRC – most wanted either a distant one or none at all. There was though, a desire for HMRC to seem more approachable, transparent and contactable.

2.2 HMRC’s brand

Perceptions of HMRC were heavily shaped by personal or anecdotal experience from friends or family. When discussing HMRC, respondents also repeated many of the descriptions and feelings they mentioned about tax as a whole.

HMRC’s brand ‘personality’, i.e. the human characteristics associated with HMRC, was fairly weak when it was compared to well-known and familiar brands such as the NHS, Amazon or Marks and Spencer. HMRC’s brand personality was strongly tied to tax, tax collection, government, being ‘complicated’ and personal interactions. Indeed, many did not have much to say about HMRC when asked to describe it. Respondents were presented with a set of images and words and asked which ones they associated with HMRC. Images portraying frustration, fear or punishment were often linked with HMRC and UK adults often felt frustrated, nervous and worried when they thought about HMRC.

Despite this, many believed HMRC is performing well and is competent. Indeed, some respondents agreed that an effective and competent tax collector will inevitably be regarded with some anxiety. HMRC was commonly described as professional and trustworthy. It benefits from a widespread agreement that the UK’s tax system seems to work well.

However, some criticised the customer service provided by HMRC. While there were many occasions of positive exchanges, the experiences that stuck in people’s minds were those that were negative, and often involved unsympathetic and difficult service.

2.3 HMRC’s reputation

HMRC’s reputation was middling. More people had a favourable view of HMRC than an unfavourable one – but the majority did not feel strongly enough to be either favourable or unfavourable. Favourability towards HMRC could be compared to the Department for Work and Pensions and local councils. Favourability (and unfavourability) was largely driven by positive or negative personal experience with HMRC.

Few said their view of HMRC had changed in the past year, but there was a tendency to believe news stories about HMRC were generally negative rather than positive. Indeed, the most commonly recalled stories were about companies avoiding paying tax. Although all were aware of the Coronavirus Job Retention Scheme and most know of the Self Employment Income Support Scheme very few realised HMRC was responsible for administering these.

HMRC performed better than some other public sector organisations, such as DWP and local councils, when it came to being an organisation the UK public trusted. However, the NHS and individuals’ personal banks outperformed HMRC in terms of trust, although these were organisations that individuals had a greater degree of familiarity with. When respondents were spontaneously asked about which organisations they tended to have trust and confidence in it was evident that organisations such as Google, Apple, mobile phone providers, and supermarkets benefit from regular contact (unlike HMRC) and excellent customer service, which drives trust. These organisations were also credited for delivering on their promises and for fixing problems quickly.

Respondents’ descriptions of the organisations they trust suggested that trust was built through familiarity, contact and reliability. Confidence and trust were generally seen as interlinked, and many contended that one cannot be built without the other. HMRC had strong foundations for building confidence, as many believed it does a good job and is competent.

Further analysis on the drivers of trust suggested that the most influential factor driving trust was something that can be described as a ‘Personable and competent’ factor that incorporated being easy to deal with, good customer service, responsiveness, having confidence, reliability, doing a good job and treating people with care and respect. Hence, this suggested that HMRC can build trust by showing it is personable at the same time as demonstrating its competence.

The second most influential factor driving trust was a ‘Fairness and equality’ factor that included making it hard to bend or break the rules, treating taxpayers equally and collecting the right tax from large businesses. There was some frustration on this point. Many respondents’ experiences of HMRC investigating their taxes told them that HMRC was strict on the everyday individual’s taxes. However, they were less sure on how well HMRC performed when it comes to collecting taxes from big business or high-profile personalities owed to a perception from the media that there are numerous loopholes available to wealthy individuals or businesses looking to avoid or evade paying tax.

Trust in the Department was higher among respondents who had had online dealings with it. They also tended to have greater confidence in it. The same was true for those individuals who were familiar or recalled positive news stories about the Department.