Tell ABAB report 2024 to 2025
Published 31 October 2025
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1. Foreword
As Chair of the Administrative Burdens Advisory Board (ABAB), my passion and commitment is focused on making a noticeable difference for small business by supporting HMRC in:
- helping to reduce administrative burdens
- ensuring that the tax system is easier, quicker and simpler
ABAB represents the small business community. I, along with the 12 independent members of ABAB come from a diverse range of businesses and professions. Our focus is to make sure that HMRC understands the needs of small businesses.
Listening to and understanding the small business experience of engaging with the tax system is vital. We use our Tell ABAB Survey and ABAB mailbox to engage with others. The amount of information received from small business is critical to our effective engagement with HMRC.
There were 3,146 responses to the 2025 Tell ABAB survey received between 17th – 31st July, with 77% directly from businesses, and 23% from agents who represent businesses.
Thank you to everyone who took part in our survey. We appreciate you taking the time to share your views and experiences. If you have any ideas on how to further improve our survey, please email your suggestions to the advisoryboard.adminburden@hmrc.gov.uk.
We will continue to work together with HMRC to highlight the messages from this survey, so that collectively we can develop a tax system that is easier, quicker and simpler.
Dame Teresa Graham, DBE
2. Executive Summary
Key Findings
Key findings from our survey reveal that there are increasing levels of awareness on Making Tax Digital for Income Tax and Self-Assessment (MTD for ITSA), but the mandatory nature of this programme isn’t popular. It is also felt that new quarterly updates will require significantly increased time and costs to manage. In terms of the benefits business expected from MTD for ITSA, the majority of businesses don’t expect any benefits.
Survey evidence on the administration associated with importing and exporting suggests that Brexit-related changes are now bedding down and increasingly seen as ‘business as usual.’ However, although settling, the current requirements are still described as a greater burden than the pre-Brexit position.
HMRC Communications
We invited views on HMRC Communications and Engagement (including telephony or webchat or app). These were described as ‘poor’ and the general usefulness has declined, with helpline service response times also described as ‘poor’, which is a trend continuing from previous years. We also looked for opinions on HMRC written communications, where we found that letters not being in plain English continues to be a common complaint, as are concerns around the tone of letters, which often feel too harsh or threatening.
HMRC Guidance
HMRC Guidance, across all channels, was felt to be generally helpful, although sometimes difficult to access. GenAI is increasingly being used to seek answers to tax queries, although users are relying on it without cross checking with other sources.
Awareness of customer support programmes like Payment on Account and Time to Pay is low. We will continue to work with HMRC to improve this position.
Legislative burden
As in previous years, the legislative burden associated with tax compliance is a big problem. Results show another year-on-year increase, with 57% believing it had worsened - an increase of 7.7% from last year. This burden directly impacts on small business productivity and wider economic growth, a situation which must change.
3. Survey in Detail
This report examines survey responses in detail. Each table presents collated survey responses and presents them both as a proportion of all respondents who were asked the question, as well as all respondents who answered the question.
Where possible, this report also compares responses to equivalent questions in the 2024 Tell ABAB survey. In those situations, the count of responses and the percentage of respondents who answered the question are both presented.
Additionally, the final column in may tables below compares the two proportions and how they differ in terms of percentage points (PPT). For instance, if an option in the 2025 survey carries 50% of the responses and carried 45% of the responses in the 2024 survey, this would be a percentage point difference of 5. A positive percentage point difference indicates a greater proportion of customers in 2025 selected that option compared to 2024. A negative difference indicates that the proportion was higher in 2024.
4. Response demographics
4.1. How was the survey received?
| Communication method | 2025 | 2024 |
|---|---|---|
| Email from HMRC | 3,023 | 5,266 |
| Email from professional body | 48 | 114 |
| Email from colleague | 32 | 63 |
| Link from a bulletin | 22 | 55 |
| Other* | 19 | 126 |
| #Total answered | 3,144 | 5,624 |
4.1.1. Percentage of respondents
| Communication method | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Email from HMRC | 96.2% | 93.6% | -0.9% |
| Email from professional Body | 1.5% | 2.0% | -0.1% |
| Email from colleague | 1.0% | 1.1% | 0.2% |
| Link from a bulletin | 0.7% | 1.0% | -1.0% |
| Other* | 0.6% | 2.2% | 1g.6% |
*‘Link on GOV.UK page’ was an option in 2024 but not in 2025. These have been included in ‘Other’ for 2024.
5. About you
5.1. Business and Agent split
77% of responses came from businesses, with just under 23% from agents. This represents a 7.3% percentage point shift towards agents completing the survey compared to last year.
| Type | 2025 | 2024 |
|---|---|---|
| Business | 2,427 | 8,487 |
| Agent | 719 | 1,565 |
| Total answered | 3,146 | 10,052 |
5.1.1. Percentage of respondents
| Type | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Business | 77.1% | 84.4% | -7.3% |
| Agent | 22.9% | 15.6% | 7.3% |
5.2. Age range
The largest proportion of respondents once again came from the 55 to 64 age group, though this saw a 2.4pp difference to the 2024 survey. The 65 and over bracket saw an increase. 2025 introduced a “Prefer not to say” option, which was selected by 4.4% of respondents.
| Range | 2025 | 2024 |
|---|---|---|
| Up to 24 | 8 | 22 |
| 25 to 34 | 105 | 185 |
| 35 to 44 | 314 | 746 |
| 45 to 54 | 702 | 1,519 |
| 55 to 64 | 1,100 | 2,255 |
| 65 and over | 770 | 1,293 |
| Prefer not to say | 139 | not applicable |
| Total Answered | 3,138 | 6,020 |
5.2.1. Percentage of respondents
| What age are you? | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Up to 24 | 0.3% | 0.4% | -0.1% |
| 25 to 34 | 3.3% | 3.1% | 0.3% |
| 35 to 44 | 10.0% | 12.4% | -2.4% |
| 45 to 54 | 22.4% | 25.2% | -2.9% |
| 55 to 64 | 35.1% | 37.5% | -2.4% |
| 65 and over | 24.5% | 21.5% | 3.1% |
| Prefer not to say | 4.4% | not applicable | not applicable |
5.3. Turnover
The highest proportion of respondents declared a turnover between 0 to £30k, demonstrated by a rise of 3.7pp since 2024, and mirrored by a 4.1pp drop in the £85k to £150k proportion from last year. Proportions under £85,000 have generally seen small increases, compared to the brackets above £85,000. This is with the exception of turnovers of £2 million and over, which have seen an increase of 2pp.
| Annual Turnover (banded) | 2025 | 2024 |
|---|---|---|
| £0 to £30,000 | 510 | 873 |
| £30,001 to £50,000 | 329 | 642 |
| £50,001 to £85,000 | 402 | 791 |
| £85,001 to £150,000 | 414 | 1,209 |
| £150,001 to £250,000 | 313 | 815 |
| £250,001 to £500,000 | 342 | 827 |
| £500,001 to £999,999 | 254 | 604 |
| £1 million to £2million | 214 | 564 |
| Over £2 million | 368 | 676 |
| Total answered | 3,146 | 7,001 |
5.3.1. Percentage of respondents
| Annual Turnover (banded) | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| £0 to £30,000 | 16.2% | 12.5% | 3.7% |
| £30,001 to £50,000 | 10.5% | 9.2% | 1.3% |
| £50,001 to £85,000 | 12.8% | 11.3% | 1.5% |
| £85,001 to £150,000 | 13.2% | 17.3% | -4.1% |
| £150,001 to £250,000 | 9.9% | 11.6% | -1.7% |
| £250,001 to £500,000 | 10.9% | 11.8% | -0.9% |
| £500,001 to £999,999 | 8.1% | 8.6% | -0.6% |
| £1 million to £2 million | 6.8% | 8.1% | -1.3% |
| Over £2million | 11.7% | 9.7% | 2.0% |
5.4. Number of clients
| Number of clients | 2025 | 2024 |
|---|---|---|
| 0 to 25 | 142 | 249 |
| 26 to 50 | 90 | 162 |
| 51 to 100 | 135 | 230 |
| 101 to 200 | 133 | 235 |
| 201 to 500 | 142 | 311 |
| 501 and over | 77 | 259 |
| Total answered | 719 | 1,446 |
5.4.1. Percentage of respondents
| Number of clients | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| 0 to 25 | 19.7% | 17.2% | 2.5% |
| 26 to 50 | 12.5% | 11.2% | 1.3% |
| 51 to 100 | 18.8% | 15.9% | 2.9% |
| 101 to 200 | 18.5% | 16.3% | 2.2% |
| 201 to 500 | 19.7% | 21.5% | -1.8% |
| 501 and over | 10.7% | 17.9% | -7.2% |
There was a substantial decrease in the proportion of respondents with 501 or more clients in the 2025 survey, dropping by 7.2pp. A smaller drop was seen in respondents with 201 to 500 clients, with an equal number of respondents declaring between 0 to 25 clients.
5.5. VAT registered clients
More than half of respondents had between 0 to 25 clients VAT registered, an increase of 11.1pp from the previous year, indicating very low levels of VAT registration even among companies with higher client numbers.
| VAT registered clients | 2025 | 2024 |
|---|---|---|
| 0 to 25 | 416 | 635 |
| 26 to 50 | 115 | 193 |
| 51 to 100 | 95 | 203 |
| 101 to 200 | 46 | 151 |
| 201 to 500 | 31 | 116 |
| 501 or over | 16 | 61 |
| Total answered | 719 | 1,359 |
5.5.1. Percentage of respondents
| VAT registered clients | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| 0 to 25 | 57.9% | 46.7% | 11.1% |
| 26 to 50 | 16.0% | 14.2% | 1.8% |
| 51 to 100 | 13.2% | 14.9% | -1.7% |
| 101 to 200 | 6.4% | 11.1% | -4.7% |
| 201 to 500 | 4.3% | 8.5% | -4.2% |
| 501 or over | 2.2% | 4.5% | -2.3% |
5.6. Where the company operates
97% of respondents operate solely within the UK. There is no substantial change compared to 2024, with a proportional increase of less than 1pp since 2024.
| Region | 2025 | 2024 |
|---|---|---|
| UK | 3,065 | 5,627 |
| Europe | 45 | 100 |
| Other countries | 36 | 89 |
| Total Answered | 3,146 | 5,816 |
5.6.1. Percentage of respondents
| Region | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| UK | 97.4% | 96.8% | 0.7% |
| Europe | 1.4% | 1.7% | -0.3% |
| Other countries | 1.1% | 1.5% | -0.4% |
6. Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA)
Respondents were informed that HMRC will require landlords and sole traders with a turnover over £50,000 to keep records digitally and provide quarterly updates of income and expenditure using MTD compatible software from April 2026. They were then asked the following questions.
6.1. Impact of MTD
| In what capacity does MTD impact you? | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| For my own practice or firm accounts | 2,250 | 71.5% | 75.8% |
| In dealing with my clients’ accounts | 717 | 22.8% | 24.2% |
| Total answered | 2,967 | 94.3% | not applicable |
76% of respondents who answered this question cited that MTD impacted their own practice or firm accounts.
Note that we are unable to account for businesses that are impacted by MTD for both their own and their clients’ accounts.
6.2. Keeping records
| How do you currently keep records for your business on a day-to-day basis? | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| MTD compatible accounting package | 1,126 | 35.8% | 50.2% |
| Spreadsheet | 517 | 16.4% | 23.0% |
| Other accounting package | 299 | 9.5% | 13.3% |
| Employ an accountant or agent or bookkeeper for record keeping | 199 | 6.3% | 8.9% |
| Paper based | 102 | 3.2% | 4.5% |
| Total answered | 2,243 | 71.3% | not applicable |
Half of respondents who answered this question used a MTD compatible accounting package. The remaining half prefer to use other methods, with 9% outsourcing record keeping to an accountant or agent.
6.3. Awareness of next phase of MTD
Respondents were then asked how aware they were of the next phase of MTD for ITSA.
There is greater awareness across the board of upcoming changes to MTD for ITSA from the 2024 survey, with increases in proportions across the 3 ‘aware’ categories. This could be due to the proximity of the changes. The distribution of the Tell ABAB survey itself is potentially increasing awareness of these changes.
| Awareness | 2025 | 2024 |
|---|---|---|
| Very aware | 351 | 645 |
| Aware | 600 | 1,112 |
| Slightly aware | 522 | 1,212 |
| Not aware | 291 | 1,208 |
| I do not know about MTD ITSA | 284 | 1,104 |
| Total answered | 2,048 | 5,281 |
6.3.1. Percentage of respondents
| Awareness | % of answered 2025 survey | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Very aware | 17.1% | 12.2% | 4.9% |
| Aware | 29.3% | 21.1% | 8.2% |
| Slightly aware | 25.5% | 23.0% | 2.5% |
| Not aware | 14.2% | 22.9% | -8.7% |
| I do not know about MTD ITSA | 13.9% | 20.9% | -7.0% |
6.4. Is business VAT registered?
There is a substantial decrease in respondents who are VAT registered. Businesses with a turnover of less than £90,000 are required to be VAT registered as of April 2024, however the 14.1pp decrease in VAT registered businesses is not reflected in the responses to turnover (Section 3.4).
| VAT registered | 2025 | 2024 |
|---|---|---|
| Yes | 1,648 | 6,853 |
| No | 779 | 1,502 |
| Total answered | 2,427 | 8,355 |
6.4.1. Percentage of respondents
| VAT registered | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 67.9% | 82.0% | -14.1% |
| No | 32.1% | 18.0% | 14.1% |
6.5. How did you find out about MTD ITSA?
The majority of respondents (20% to 36% of responses to this question) cited HMRC letters as their main source of info about MTD ITSA. 20% of respondents cited other reasons, these included their accountant and HMRC emails, and 45 respondents (1.1%) cited this ‘Tell ABAB’ survey itself as the first time they learnt about MTD ITSA.
| How did you find out about MTD ITSA? | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| HMRC letter | 628 | 20.0% | 35.9% |
| GOV.UK website | 320 | 10.2% | 18.3% |
| Agent | 233 | 7.4% | 13.3% |
| Trade press or newspapers | 212 | 6.7% | 12.1% |
| Family and friends | 59 | 1.9% | 3.4% |
| Trade association | 54 | 1.7% | 3.1% |
| Other | 243 | 3.3% | 20.1% |
| Total answered | 1,749 | 55.6% | not applicable |
6.6. Increased emphasis on software use
The majority (74%) of answering respondents supported the increased emphasis of software use for interaction with HMRC, however 40% of respondents who answered ‘Yes’ were not in favour of software use being mandatory, indicating a level of caution over any removal of non-digital communication channels.
6.6.1. Do you support the increasing emphasis on the use of software by customers to interact with HMRC such as Making Tax Digital for VAT or Self-Assessment?
| Response | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes, but not if mandatory | 705 | 22.4% | 40.0% |
| Yes | 593 | 18.8% | 33.7% |
| No | 464 | 14.7% | 26.3% |
| Total answered | 1,762 | 56.0% | not applicable |
6.7. Effect on cost and time
Respondents were asked, with what they know at present, what impact MTD ITSA would have on the cost and time related to both submitting quarterly updates and keeping digital records.
For both areas, the highest proportion of respondents believed that MTD ITSA would require significantly increased cost and time to manage (41% for costs, 36-39% for time), with substantially fewer indicating a reduced impact.
Compared to last year, a greater proportion of respondents believe in significantly higher cost and time needs across both areas, and a smaller proportion expect a reduction.
6.7.1. Submitting quarterly updates: 2025
| Perceived Impact | MTD Effect on Cost (%) | MTD Effect on Time (%) |
|---|---|---|
| Increase significantly | 40.8% | 35.9% |
| Increase slightly | 31.0% | 28.6% |
| No significant effects | 26.0% | 28.7% |
| Reduce slightly | 1.3% | 5.4% |
| Reduce significantly | 0.9% | 1.4% |
6.7.2. Submitting quarterly updates: 2024
| Perceived Impact | MTD Effect on Cost (%) | MTD Effect on Time (%) |
|---|---|---|
| Increase significantly | 34.1% | 32.5% |
| Increase slightly | 31.6% | 32.5% |
| No significant effects | 29.1% | 27.7% |
| Reduce slightly | 3.6% | 5.3% |
| Reduce significantly | 1.8% | 2.0% |
6.7.3. Keeping digital records: 2025
| Perceived Impact | MTD Effect on Cost (%) | MTD Effect on Time (%) |
|---|---|---|
| Increase significantly | 40.7% | 38.6% |
| Increase slightly | 28.4% | 29.3% |
| No significant effects | 27.1% | 27.6% |
| Reduce slightly | 2.5% | 3.0% |
| Reduce significantly | 1.3% | 1.5% |
6.7.4. Keeping digital records: 2024
| Perceived Impact | MTD Effect on Cost (%) | MTD Effect on Time (%) |
|---|---|---|
| Increase significantly | 32.2% | 33.4% |
| Increase slightly | 30.9% | 30.9% |
| No significant effects | 30.6% | 28.8% |
| Reduce slightly | 4.1% | 4.9% |
| Reduce significantly | 2.2% | 2.1% |
6.8. Benefits of MTD ITSA
68.5% of responses to this question indicated no benefits to MTD ITSA. Of those who expected a benefit, up to date picture of business finances had the highest number of responses, followed by more accurate records. Of the “Other” responses, a number of these also reported no benefits but also included comments regarding additional burden on time and cost, as well as uncertainty on exactly what benefits to expect.
6.8.1. With what you know at present, what benefits (if any) will moving to MTD ITSA bring to your business/clients?*
| Benefits | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| No benefits | 2,154 | 68.5% | 65.2% |
| Up to date picture of the business finances | 355 | 11.3% | 10.7% |
| More accurate records | 292 | 9.3% | 8.8% |
| Updates submitted quicker | 250 | 7.9% | 7.6% |
| Digital confidence in record keeping | 160 | 5.1% | 4.8% |
| Other | 93 | 0.2% | 0.2% |
| Total responses | 3,304 | not applicable | not applicable |
*Respondents could select multiple responses to this question.
7. Importing and exporting
7.1. Do you import or export?
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 350 | 1,074 |
| No | 2,779 | 5,616 |
| Total Answered | 3,129 | 6,690 |
7.1.1. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 11.2% | 16.1% | -4.9% |
| No | 88.8% | 83.9% | 4.9% |
A lower proportion (11.2%) of respondents import or export according to this year’s survey, with a 4.9pp decrease in proportion from the 2024 survey.
7.2. Admin burden since leaving EU
This year’s survey shows an increase in respondents whose admin burden has increased moderately, but is now considered business as usual. However, over half of these respondents still highlight a considerable increase in admin burden since leaving EU.
7.2.1. In the last year since the UK has left the EU would you say the administration associated with importing or exporting from the UK has changed?
| Change | 2025 | 2024 |
|---|---|---|
| Increased considerably and continues to be a burden on your business | 195 | 609 |
| Increased moderately but is now considered business as usual | 94 | 227 |
| Not changed and is about the same | 49 | 158 |
| Reduced and is not a burden on your business | 8 | 18 |
| Total Answered | 346 | 1,012 |
7.2.2. Percentage of respondents
| Change | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Increased considerably and continues to be a burden on your business | 56.4% | 60.2% | -3.8% |
| Increased moderately but is now considered business as usual | 27.2% | 22.4% | 4.7% |
| Not changed and is about the same | 14.2% | 15.6% | -1.5% |
| Reduced and is not a burden on your business | 2.3% | 1.8% | 0.5% |
7.3. HMRC interventions
HMRC has changed custom processes by the introduction of:
* the Single Trade Window (STW)
-
closure of CHIEF and the use of Customs Declaration Service (CDS)
-
Safety and Security Declarations (S&S) for freight
-
Merchandise in Baggage (MiB) imports from the EU
7.3.1. Interventions affecting your business
There is a noticeable 12.7pp decrease in respondents saying that HMRC interventions make their operations less efficient, with both ‘More efficient’ and ‘Unchanged’ seeing increases in proportional responses from 2024.
| If this affected your business, has it made importing or exporting: | 2025 | 2024 |
|---|---|---|
| Unchanged | 209 | 369 |
| Less efficient | 98 | 282 |
| More efficient | 22 | 13 |
| Total answered | 329 | 664 |
7.3.2. Percentage of respondents
| If this affected your business, has it made importing or exporting: | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Unchanged | 63.5% | 55.6% | 8.0% |
| Less efficient | 29.8% | 42.5% | -12.7% |
| More efficient | 6.7% | 2.0% | 4.7% |
*The option of ‘Efficient’ was removed from the 2025 survey. Proportions for 2024 are shown with ‘Efficient’ responses removed.
7.4. Trader Support Service (TSS)
7.4.1. Does your business trade with Northern Ireland?
Respondents were informed that ‘As part of the UK transition away from the EU, HM Government introduced the Trader Support Service (TSS) for the movement of goods to and from Northern Ireland. The system is designed so that businesses can access and manage their own administration.
| Response | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 121 | 3.8% | 35.3% |
| No | 222 | 7.1% | 64.7% |
| Total answered | 343 | 10.9% | 100% |
11% of all respondents answered this question, and of those that responded 35% traded with Northern Ireland.
7.4.2. Administration
In terms of who completes TSS-focussed administration, similar to 2024 the majority of respondents to this question rely on a third party, with a negligible decrease in proportion. There is a 2.1pp decrease in respondents who complete all administration themselves, indicating a small increase in businesses outsourcing their TSS administration.
| If ‘Yes’ via TSS, does your business: | 2025 | 2024 |
|---|---|---|
| Rely upon a third party to complete all administration whereby you incur a charge for that service | 57 | 102 |
| Mixture of both | 35 | 56 |
| Complete all the administration yourselves | 28 | 54 |
| Total Answered | 120 | 212 |
7.4.3. Percentage of respondents
| If ‘Yes’ via TSS, does your business: | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Rely upon a third party to complete all administration whereby you incur a charge for that service | 47.5% | 48.1% | -0.6% |
| Mixture of both | 29.2% | 26.4% | 2.8% |
| Complete all the administration yourselves | 23.3% | 25.5% | -2.1% |
7.4.4. How do you find TSS?
There was a substantial 8.5pp decrease in respondents who found TSS very difficult to use, with rises seen across ‘difficult’, ‘easy’, and ‘very easy’ to use responses. This indicates that while there are still issues, customers are finding TSS easier to use.
| How do you find TSS? | 2025 | 2024 |
|---|---|---|
| Very easy to use | 4 | 4 |
| Easy to use | 8 | 6 |
| Neither easy nor difficult | 52 | 79 |
| Difficult to use | 30 | 39 |
| Very difficult to use | 20 | 45 |
| Total Answered | 114 | 173 |
7.4.5. Percentage of respondents
| How do you find TSS? | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Very easy to use | 3.5% | 2.3% | 1.2% |
| Easy to use | 7.0% | 3.5% | 3.5% |
| Neither easy nor difficult | 45.6% | 45.7% | -0.1% |
| Difficult to use | 26.3% | 22.5% | 3.8% |
| Very difficult to use | 17.5% | 26.0% | -8.5% |
8. Payment On Account (POA)
This programme helps spread the cost of tax, as it allows for advance payments to be made towards the next tax bill.
8.1. Awareness and use
55% of respondents were aware of payments on account. Of these, 59% had experience using POAs, with the majority having a negative opinion of them. Respondents with a negative opinion of POAs remarked on the reduction to cash flow, particularly for small businesses and particularly on first entering the system, however the ability to manage cash flow using POAs and spread the burden of tax across the filing period is also cited regularly in a positive light.
8.1.1. Are you aware of payments on account (POA)?
| Response | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 1,729 | 55.0% | 55.4% |
| No | 1,391 | 44.2% | 44.6% |
| Total answered | 3,120 | 99.2% | not applicable |
All subsequent questions in this section were asked only to respondents who were aware of POAs.
8.1.2. Which of the following statements best describes your experience of POAs in ITSA?
| Experience | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| I have not used POAs and do not have a view on them | 702 | 41.0% | 41.0% |
| I have experience/knowledge of POAs and have a negative view of them | 558 | 32.6% | 32.6% |
| I have experience/knowledge of POAs and have a positive view of them | 451 | 26.4% | 26.4% |
| Total answered | 1,711 | 100% | not applicable |
8.2. POA reform
51% of respondents who were aware of POAs believed that HMRC should reform them. The most common suggestions for reform centre on cash flow, with some respondents saying that they should account for the fluctuating payments of small businesses or allow POAs to be paid monthly to spread the impact on cash flow. Many respondents prefer to pay tax on actual earnings rather than predicted income.
8.2.1. Do you think HMRC should explore reform of the POA?
| Response | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 876 | 51.2% | 54.6% |
| No | 727 | 42.5% | 45.4% |
| Total answered | 1,603 | 93.7% | not applicable |
8.3. Further comments
Respondents were concerned that Making Tax Digital for ITSA would cause confusion with POAs, with some expecting MTD to stop POAs entirely. Some suggest that the advent of MTD ITSA presents an opportunity to redesign POAs. Concerns were also raised on POA guidance and the difficulties of navigating the HMRC website.
9. Time To Pay (TTP)
This initiative supports customers when they are unable to pay their tax bill in full. It allows for arrangements to be made where payments via instalments can be made.
9.1. TTP Awareness
38% of respondents were aware of HMRC’s time to pay arrangements, against 62% who were not. Compared to 2024, awareness of TTP arrangements has decreased slightly.
Of those that were aware, 34% had experience using TTP, an increase of 6pp from the 2024 survey.
Note: In 2025, subsequent TTP question were asked only to customers who answered ‘Yes’ to awareness of TTP arrangements, compared to 2024 when they were asked to all respondents. For comparison, 2024 respondents who did not answer ‘Yes’ to the TTP awareness question have been removed from the populations for these questions.
9.1.1. Are you aware of HMRC TTP arrangements?
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 1,188 | 2,436 |
| No | 1,945 | 3,713 |
| Total answered | 3,133 | 6,149 |
9.1.2. Percentage of respondents
| Are you aware of HMRC TTP arrangements | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 37.9% | 39.6% | -1.7% |
| No | 62.1% | 60.4% | 1.7% |
9.2. TTP Use
9.2.1. Have you had any experience of using HMRC’s TTP arrangements?
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 409 | 980 |
| No | 779 | 1,446 |
| Total Answered | 1,188 | 2,426 |
9.2.1. Percentage of respondents
| Have you had any experience of using HMRC’s TTP arrangements? | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 34.4% | 40.4% | 6.0% |
| No | 65.6% | 59.6% | -6.0% |
9.3. TTP Which tax did you need it for?
The most common tax among TTP users was VAT (28.5%). In 2024, the most common tax was Self Assessment, but in 2023 this was VAT. Both Self Assessment and VAT saw decreases in proportions, with noticeable increases in Corporation Tax and Pay As You Earn (PAYE).
9.3.1. Which of the taxes did you need it for?
| Tax type | 2025* | 2024 |
|---|---|---|
| VAT | 213 | 269 |
| Self-Assessment | 194 | 284 |
| Corporation Tax | 169 | 147 |
| PAYE | 165 | 138 |
| Other | 6 | 85 |
| Total answered | 747 | 923 |
9.3.2. Percentage of respondents
| Tax type | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| VAT | 28.5% | 29.1% | -0.6% |
| Self Assessment | 26.0% | 30.8% | -4.8% |
| Corporation Tax | 22.6% | 15.9% | 6.7% |
| PAYE | 22.1% | 15.0% | 7.1% |
| Other | 9.2% | 9.2% | 0.0% |
*In 2025, respondents could select multiple taxes that they use TTP for. In 2024, only one tax was selectable.
9.4. TTP since the pandemic
60% of customers who were aware of TTP had used it since the pandemic, an increase of 9.8pp since 2024, further indicating increased use of TTP compared to 2024.
9.4.1. Have you had course to resort to TTP since the pandemic?
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 83 | 317 |
| No | 56 | 318 |
| Total Answered | 139 | 635 |
9.4.2. Percentage of respondents
| Response | % of answered (2025 survey) | % of answered (2024 survey) | PPT change since 2024 |
|---|---|---|---|
| Yes | 59.7% | 49.9% | 9.8% |
| No | 40.3% | 50.1% | -9.8% |
9.4.3 TTP administration burden
As with the question covering the admin burden during the pandemic, we saw a decrease in ‘significant’ additional burden (much larger in the case of post-pandemic) but a substantial rise in ‘little’ additional burden. There was little change to proportions of respondents remarking a reduction in admin burden.
9.4.4. Thinking about the administration burdens on you or your business has arranging TTP after the pandemic effected these?
| Effect | 2025 | 2024 |
|---|---|---|
| Added to these significantly | 6 | 75 |
| Added to these a little | 37 | 120 |
| No effect | 28 | 144 |
| Reduced these a little | 7 | 29 |
| Reduced these significantly | 5 | 23 |
| Total Answered | 83 | 391 |
9.4.5. Percentage of respondents
| Effect | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Added to these significantly | 7.2% | 19.2% | -12.0% |
| Added to these a little | 44.6% | 30.7% | 13.9% |
| No effect | 33.7% | 36.8% | -3.1% |
| Reduced these a little | 8.4% | 7.4% | 1.0% |
| Reduced these significantly | 6.0% | 5.9% | 0.1% |
The two admin burden questions for the 2025 survey are compared below:
9.4.6. During pandemic administration burden
| How did the administration burden of arranging TTP change? | Responses | % of answered |
|---|---|---|
| Added to these significantly | 8 | 13.1% |
| Added to these a little | 26 | 42.6% |
| No effect | 19 | 31.1% |
| Reduced these a little | 5 | 8.2% |
| Reduced these significantly | 3 | 4.9% |
9.4.7. Post-pandemic administration burden
| How did the administration burden of arranging TTP change? | Responses | % of answered |
|---|---|---|
| Added to these significantly | 6 | 7.2% |
| Added to these a little | 37 | 44.6% |
| No effect | 28 | 33.7% |
| Reduced these a little | 7 | 8.4% |
| Reduced these significantly | 5 | 6.0% |
9.5. TTP Online self-serve
9.5.1. Have you used the online services to arrange a TTP?
| Response | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 140 | 11.8% | 34.2% |
| No | 269 | 22.6% | 65.8% |
| Total answered | 409 | 34.4% | not applicable |
34% of answering respondents (12% of respondents who said they were aware of TTP) had used the online services to arrange it. Customers who had not used the service were asked to elaborate why:
9.5.2. If you have not used the self-serve TTP service, what was the reason?
| Reason | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Did not want to use this service, prefer to speak to an operative | 96 | 8.1% | 36.2% |
| You are not aware of this service | 72 | 6.1% | 27.2% |
| Tried to use this but did not meet the criteria | 53 | 4.5% | 20.0% |
| Other | 44 | 3.7% | 17.6% |
| Total answered | 265 | 8.4% | not applicable |
The majority did not use the online service because they wanted the reassurance of speaking to an HMRC agent.
27% of answers came from respondents who were not aware of the service, while 20% couldn’t use the service due to eligibility requirements.
Other responses included those from agents, who are not allowed to set up TTP on their clients’ behalf, as well as respondents who were aware of the TTP arrangements but did not need it.
9.5.3. If you have used the online services to arrange a TTP, which self-serve online TTP did you use?
| Self-serve type | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Self Assessment (SA) | 45 | 3.8% | 32.6% |
| VAT | 34 | 2.9% | 24.6% |
| PAYE | 24 | 2.0% | 17.4% |
| PAYE & VAT | 11 | 0.9% | 8.0% |
| SA & VAT | 10 | 0.8% | 7.2% |
| SA & PAYE | 9 | 0.8% | 6.5% |
| Other | 5 | 0.4% | 3.5% |
| Total answered | 138 | 11.6% | not applicable |
46% of respondents to this question had used the Self-Assessment TTP service, either on its own or with other services. This was followed by VAT from 40% of respondents and 32% using PAYE.
9.5.4. If you have used the self-service TTP service how did you find it?
| Rating | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Easy to follow | 117 | 43.5% | 86.0% |
| Difficult to follow | 19 | 7.1% | 14.0% |
| Total answered | 136 | 50.6% | not applicable |
(Filtered to only participants who answered that they had used the online TTP service.)
Most respondents who answered this question (86%) found the TTP self-service easy to follow.
9.5.5. How did you find out about the self-serve TTP online service?
| How did you find out about the self-serve TTP online service? | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| GOV.UK or personal tax account or business tax account | 39 | 3.3% | 28.1% |
| HMRC letter | 29 | 2.4% | 20.9% |
| Word of mouth | 27 | 2.3% | 19.4% |
| HMRC advisor | 13 | 1.1% | 9.4% |
| Other | 31 | 2.6% | 21.7% |
| Total answered | 139 | 11.70% | not applicable |
Most respondents to this question heard about the TTP online self-service though the Personal or Business tax account, or on GOV.UK. The second most common answer was ‘other’, including those that had heard from agents, Continuing Professional Development (CPD) courses, professional bodies, and accountants.
10. Working from Home (WFH) and Nomadic Workers
This section looked at the understanding and experiences of the tax implications of working from home or working remotely from various locations whilst not tied to a traditional base.
10.1. Do you have these workers?
10.1.1. Do you have workers who Work from Home?
| Response | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 1,501 | 47.7% | 48.1% |
| No | 1,620 | 51.5% | 51.9% |
| Total answered | 3,121 | 99.2% | 100% |
10.1.2. Do you have workers who are Nomadic Workers
| Response | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 218 | 6.9% | 7.0% |
| No | 2,914 | 92.6% | 93.0% |
| Total answered | 3,132 | 99.6% | 100% |
48% of respondents to this question had workers who work from home, but only 7% had nomadic workers. The proportions of both WFH and Nomadic Workers decreased from the 2024 survey, with a 3.8pp drop in workers who work from home and a more substantial 9.8pp drop in Nomadic Workers.
10.1.3. Change over time: Work from Home
| Do you have workers who Work from Home? | 2025 | 2024 |
|---|---|---|
| Yes | 1,501 | 3,133 |
| No | 1,620 | 2,905 |
| Total answered | 3,121 | 6,038 |
10.1.4. Percentage of respondents
| Do you have workers who Work from Home? | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 48.1% | 51.9% | -3.8% |
| No | 51.9% | 48.1% | 3.8% |
10.1.5. Change over time: Nomadic Workers
| Do you have Nomadic Workers? | 2025 | 2024 |
|---|---|---|
| Yes | 218 | 1,026 |
| No | 2,914 | 5,084 |
| Total Answered | 3,132 | 6,110 |
10.1.6. Percentage of respondents
| Do you have Nomadic Workers? | % of answered 2025 survey | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 7.0% | 16.8% | -9.8% |
| No | 93.0% | 83.2% | 9.8% |
10.2. Awareness and ease of HMRC guidance
10.2.1. Are you familiar with HMRC’s guidance for WFH workers?
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 1,058 | 1,801 |
| No | 439 | 1,264 |
| Total answered | 1,497 | 3,065 |
10.2.2. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 70.7% | 58.8% | 11.9% |
| No | 29.3% | 41.2% | -11.9% |
10.2.3. Are you familiar with HMRC’s guidance for Nomadic workers?
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 88 | 231 |
| No | 129 | 733 |
| Total answered | 217 | 964 |
10.2.4. Percentage of respondents
| Response | % of answered (2025 survey) | % of answered (2024 survey) | PPT change since 2024 |
|---|---|---|---|
| Yes | 40.6% | 24.0% | 16.6% |
| No | 59.4% | 76.0% | -16.6% |
When asked how easy they found HMRC’s guidance to follow, 76% of answering respondents said that the WFH guidance was easy to follow, compared to 57% who thought the Nomadic Workers guidance was easy to follow.
*Filtered to just those who answered that they were familiar with the relevant guidance.
10.2.5. Change over time: How do you find the WFH guidance?
Compared to the 2024 survey, there was a substantial 19.2pp increase in respondents who found the WFH guidance easy to follow. This is in contrast to Nomadic Workers guidance, which saw a 15pp decrease in respondents who found the guidance helpful.
| Rating | 2025 | 2024 |
|---|---|---|
| Easy to follow | 806 | 128 |
| Difficult to follow | 246 | 95 |
| Total Answered | 1,052 | 223 |
10.2.6. Percentage of respondents
| How do you find the WFH guidance? | % of answered (2025 survey) | % of answered (2024 survey) | PPT change since 2024 |
|---|---|---|---|
| Easy to follow | 76.6% | 57.4% | 19.2% |
| Difficult to follow | 23.4% | 42.6% | -19.2% |
10.2.7. Change over time: How do you find the Nomadic Workers guidance?
| Rating | 2025 | 2024 |
|---|---|---|
| Easy to follow | 53 | 1,223 |
| Difficult to follow | 34 | 388 |
| Total Answered | 87 | 1,611 |
10.2.8. Percentage of respondents
| How do you find the Nomadic Workers guidance? | % of answered (2025 survey) | % of answered (2024 survey) | PPT change since 2024 |
|---|---|---|---|
| Easy to follow | 60.9% | 75.9% | -15.0% |
| Difficult to follow | 39.1% | 24.1% | 15.0% |
10.3. Administration burden
10.3.1. Change over time: Thinking about the administration burdens on you or your business have the WFH rules effected these?
| Effect | 2025 | 2024 |
|---|---|---|
| Added to these significantly | 128 | 167 |
| Added to these a little | 401 | 554 |
| No effect | 919 | 1,333 |
| Reduced these a little | 13 | 43 |
| Reduced these significantly | 14 | 21 |
| Total Answered | 1,475 | 2,118 |
10.3.2. Percentage of respondents
| Effect | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Added to these significantly | 8.7% | 7.9% | 0.8% |
| Added to these a little | 27.2% | 26.2% | 1.0% |
| No effect | 62.3% | 62.9% | -0.6% |
| Reduced these a little | 0.9% | 2.0% | -1.1% |
| Reduced these significantly | 0.9% | 1.0% | 0.0% |
10.3.3. Change over time: Thinking about the administration burdens on you or your business have the Nomadic Worker rules effected these?
| Effect | 2025 | 2024 |
|---|---|---|
| Added to these significantly | 30 | 68 |
| Added to there a little | 58 | 94 |
| No effect | 114 | 228 |
| Reduced these a little | 0 | 3 |
| Reduced these significantly | 2 | 2 |
| Total Answered | 204 | 395 |
10.3.4. Percentage of respondents
| Effect | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Added to these significantly | 14.7% | 17.2% | -2.5% |
| Added to there a little | 28.4% | 23.8% | 4.6% |
| No effect | 55.9% | 57.7% | -1.8% |
| Reduced these a little | 0.0% | 0.8% | -0.8% |
| Reduced these significantly | 1.0% | 0.5% | 0.5% |
Comparing the responses to the 2024 survey, there is little change in proportions for WFH administration burden. For Nomadic Workers, there is a slightly larger change with more respondents reporting a small increase in admin burden compared to last year, which is accounted for by decreases in those reporting a significant burden and no effect.
10.4. Working for short periods outside the UK
10.4.1. WFH: Do you have individuals working for short periods outside the UK?
| Response | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 208 | 6.6% | 13.9% |
| No | 1,287 | 40.9% | 86.1% |
| Total answered | 1,495 | 47.5% | not applicable |
10.4.2. Nomadic Workers: Do you have individuals working for short periods outside the UK?
| Response | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 64 | 2.0% | 29.6% |
| No | 152 | 4.8% | 70.4% |
| Total answered | 216 | 6.9% | not applicable |
30% of respondents with Nomadic workers reported that they have employees who work for short periods outside the UK, compared to just 14% of respondents with WFH workers.
10.4.3. How many Working from Home?
| Number | Count of Responses | As % of total* | As % of answered |
|---|---|---|---|
| 1 to 5 | 179 | 86.1% | 86.1% |
| 6 to 10 | 17 | 8.2% | 8.2% |
| 11 to 20 | 5 | 2.4% | 2.4% |
| 21 and over | 7 | 3.4% | 3.4% |
| Total answered | 208 | not applicable | not applicable |
10.4.4. How many Nomadic Workers?
| Number | Count of Responses | As % of total* | As % of answered |
|---|---|---|---|
| 1 to 5 | 52 | 81.2% | 81.2% |
| 6 to 10 | 7 | 10.9% | 10.9% |
| 11 to 20 | 2 | 3.1% | 3.1% |
| 21 and over | 3 | 4.7% | 4.7% |
| Total answered | 64 | not applicable | not applicable |
*Filtered to only respondents who answered ‘Yes’ when asked if they have individuals working for short periods outside the UK.
The vast majority of respondents have fewer than 5 employees working for short periods outside the UK, whether WFH (86%) or Nomadic (81%).
11. Off Payroll Working (OPW): also referred to as IR35
11% of survey recipients said that they had experience of OPW since April 2020.
The following questions were asked only to those 352 respondents.
| In what capacity have you encountered off payroll working: | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| An employer or customer or client | 163 | 46.3% | 46.3% |
| A worker previously working through their own intermediary who is working via a personal service company (PSC) and deemed outside the rules by a customer or client (working as self-employed paying tax as a PSC still) | 37 | 10.5% | 10.5% |
| A worker previously working through their own intermediary (PSC) who is still working via a PSC providing services to a small private sector customer or client | 36 | 10.2% | 10.2% |
| A worker previously working through their own intermediary but now deemed inside the rules by a customer or client (working as an employee and paying tax as an employee) | 31 | 8.8% | 8.8% |
| An employment agency or payroll company dealing with OPW | 28 | 8.0% | 8.0% |
| A worker previously working through their own intermediary who is no longer working via PSC (for example instead working as a direct employee of the customer, client or organisation) | 21 | 6.0% | 6.0% |
| Other (an agent or advisor) | 36 | 10.2% | 10.2% |
| Total answered | 352 | 100% | not applicable |
The majority (46%) of experience of IR35 was as an employer/customer or client. 10.5% had experience as former Personal Service Company (PSC) workers. A substantial 10.2% answered “Other”, including accountants and other businesses advising on the nature of IR35, as well as a mix of the above options.
11.1. Engaging with Off-Payroll workers
| Are you a client who as of 1st April 2022 engages off payroll workers? | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 60 | 17.0% | 26.5% |
| No | 152 | 43.2% | 67.3% |
| Don’t know | 14 | 4.0% | 6.2% |
| Total answered | 226 | 64.2% |
17% of respondents with OPW experience had engaged off-payroll workers since April 2022.
11.2. Off-Payroll Working guidance
| Have you used the new off payroll working online guidance products? | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 146 | 41.5% | 41.7% |
| No | 204 | 58.0% | 58.3% |
| Total answered | 350 | 99.4% |
42% of relevant respondents had used the online guidance products for OPW. More respondents found the guidance easy (32.9%) than difficult (19.7%) to use. However, only 21% found the guidance useful.
| How easy and useful did you find it | Count of Responses | As % of responses | As % of section |
|---|---|---|---|
| Very easy to use | 9 | 6.2% | 6.6% |
| Easy to use | 36 | 24.7% | 26.3% |
| Neither easy nor difficult | 65 | 44.5% | 47.4% |
| Difficult to use | 21 | 14.4% | 15.3% |
| Very difficult to use | 6 | 4.1% | 4.4% |
| Useful to use | 4 | 2.7% | 21.1% |
| Not useful to use | 15 | 10.3% | 78.9% |
Note: respondents could select multiple responses to this question. Only those who had used the online guidance were asked this question.
11.3. Check Employment Status for Tax (CEST)
| Do you use the HMRC employment status tool CEST? | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 202 | 6.4% | 58.2% |
| No | 145 | 4.6% | 41.8% |
| Total answered | 347 | 11.0% | not applicable |
| Do you find it helpful?* | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 119 | 58.9% | 64.7% |
| No | 65 | 32.2% | 35.3% |
| Total answered | 184 | 91.1% | not applicable |
(*Filtered to only those who answered that they do use the CEST tool)
6.4% of respondents said that they used the CEST tool, with 59% of those who had used the tool finding it useful. Of those who didn’t find the tool useful, they raised concerns of using a ‘one size fits all’ approach, and stressed the importance of subtle differences and nuances between cases that the tool did not account for.
12. Benefits in Kind
| If you previously submitted benefits in kind using the P11D form but now payroll these benefits which approach do you feel was least burdensome | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Not applicable - no benefits in kind | 2,038 | 64.8% | 66.4% |
| P11d | 712 | 22.6% | 23.2% |
| Payrolling benefits in kind | 317 | 10.1% | 10.3% |
| Total answered | 3,067 | 97.5% |
23% of respondents found the previous P11D less burdensome, compared to 10% who preferred the current process of payrolling.
| Has P11D mandatory online filing versus paper submission added or reduced your burden for this process | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Added to these significantly | 109 | 3.5% | 10.6% |
| Added to these a little | 240 | 7.6% | 23.4% |
| No effect | 416 | 13.2% | 40.6% |
| Reduced these a little | 184 | 5.8% | 18.0% |
| Reduced these significantly | 76 | 2.4% | 7.4% |
| Total answered | 1,025 | 32.6% |
13% of respondents report no change to the administrative burden of benefit in kind reporting through P11D. More respondents report an increase in the burden for this process (11.1%) than a reduction (8.2%).
13. Basis Period Reform
13.1. Impact and awareness of changes
13.1.1. Were you impacted by Basis Period Reform?
| Response | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 466 | 14.8% | 15.3% |
| No | 2,588 | 82.3% | 84.7% |
| Total answered | 3,054 | 97.1% | not applicable |
15% of respondents stated they were impacted by changes to Basis Period Reform.
371 “Yes” answers came from agents, representing 52% of the agents who completed this survey.
13.1.2. Were you aware of the Basis Period Reform changes?*
| Level of awareness | 2025 | 2024 |
|---|---|---|
| Very aware | 281 | 731 |
| Aware | 103 | 387 |
| Somewhat aware | 38 | 48 |
| Not aware | 42 | 134 |
| Total answered | 464 | 1,300 |
13.1.3. Percentage of respondents
| Level of awareness | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Very aware | 60.6% | 56.2% | 4.3% |
| Aware | 22.2% | 29.8% | -7.6% |
| Somewhat aware | 9.1% | 3.7% | 5.4% |
| Not aware | 8.2% | 10.3% | -2.1% |
*In the 2024 survey this was phrased as ‘Are you aware of the changes proposed to Basis Period Reform?’
92% of respondents to this question were at least somewhat aware of the Basis Period Reform changes, with 61% being ‘very aware’. This represents a greater proportion of people who were at least somewhat are compared to the 2024 survey, and a 4.3pp increase in the proportion who were very aware.
13.2. Helping clients change
13.2.1. Did you help any clients change to the tax year basis already?
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 359 | 630 |
| No | 101 | 642 |
| Total Answered | 460 | 1,272 |
13.2.2. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 78.0% | 49.5% | 28.5% |
| No | 22.0% | 50.5% | -28.5% |
The proportion of agents who had helped their clients change to the tax year basis saw a large increase from 50% in 2024 to 78% in 2025
13.3. Impacts of the reform
While last year’s question asked respondents to anticipate whether they would see improvements to business taxation and compliance cost, this year’s survey now asks them of their lived experience. This has resulted in a substantial 16.4pp increase in the proportion of respondents who have experienced no improvement.
13.3.1. Has this change resulted in an improvement in business taxation and reduced business compliance cost?*
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 52 | 259 |
| No | 313 | 626 |
| Not sure | 99 | 341 |
| Total Answered | 464 | 1,226 |
*In 2024 this question was phrased as ‘Do you believe this change will result in an improvement in business taxation and reduce businesses compliance costs in the long term?’
13.3.2. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 11.2% | 21.1% | -9.9% |
| No | 67.5% | 51.1% | 16.4% |
| Not sure | 21.3% | 27.8% | -6.5% |
13.4. Embracing changes and benefits
77% of respondents who answered this question said that they embrace these changes. When responding about the benefits or lack of benefits of technology, feedback indicated that there was an increase in efficiency, but this came at the cost of further training, as well as cost increases rather than cost savings.
13.4.1. When considering the increase in the usage of technology enabled products, have you or your company embraced these changes?
| Response | Count of responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 351 | 11.2% | 76.5% |
| No | 108 | 3.4% | 23.5% |
| Total answered | 459 | 14.6% | not applicable |
13.4.2. How has your company benefited or not benefited from technology?
| Response | Count of Responses | As % of responses (by section) |
|---|---|---|
| Cost increases | 268 | 31.0% |
| Increased efficiency | 235 | 27.2% |
| Training required | 207 | 24.0% |
| Cost saving | 58 | 6.7% |
| Reduced efficiency | 52 | 6.0% |
| Limited training required | 44 | 5.1% |
Note: Respondents could select multiple responses to this question.
14. Late payment penalties and impact
Some respondents cited technical or clerical issues that meant VAT returns were not filed on time or direct debits had not been properly set up. Others raised concerns about unclear payment deadlines. Many respondents said that they would take the action of setting up direct debits or generally ensuring that VAT returns were paid on time.
14.1.1. Has your business received penalty points or penalties relating to the late submission or late payment of vat returns?
| Response | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 545 | 17.3% | 17.6% |
| No | 2,543 | 80.8% | 82.4% |
| Total answered | 3,088 | 98.2% | 100% |
18% of the respondents said that they had received penalties for late submission or payment of VAT returns. When asked to comment on what impact this would have on how they submit VAT returns in future, there were a variety of responses.
15. Personal and Business Tax Accounts (PTA & BTA)
15.1. Usage of PTA and BTA
71% of answering respondents had used the PTA, with 66% having used the BTA. Both proportions have seen an increase since the 2024 survey, with BTA use increasing by 12.9pp.
15.1.1. Have you used the personal tax account?
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 2,037 | 2,683 |
| No | 846 | 1,535 |
| Total Answered | 2,883 | 4,218 |
15.1.2. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 70.7% | 63.6% | 7.0% |
| No | 29.3% | 36.4% | -7.0% |
15.1.3. Have you used the business tax account?
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 1,938 | 2,695 |
| No | 1,008 | 2,397 |
| Total Answered | 2,946 | 5,092 |
15.1.4. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 65.8% | 52.9% | 12.9% |
| No | 34.2% | 47.1% | -12.9% |
15.2. Administrative burden
Most respondents for both PTA and BTA report no effect on their administration burden with the adoption of the digital services. Answers to this question follow very closely to proportions seen in 2024 for the BTA. For the PTA there is a small reduction in the proportion of customers who saw a reduced admin burden, with the largest increase seen in ‘No effect’ answers.
Respondents who had not used the PTA or BTA largely were not aware of them or weren’t sure whether this was equivalent to their Government Gateway login. Business customers also mentioned that their accountants and agents dealt with business tax matters, and they would have no need to use a personal tax account for business related matters.
15.2.1. Compared with the previous paper based approach do you think that this has reduced or increased your administrative burden in dealing with your personal tax affairs?
| Response | 2025 | 2024 |
|---|---|---|
| Added to these significantly | 136 | 179 |
| Added to these a little | 256 | 311 |
| No effect | 860 | 1,008 |
| Reduced these a little | 555 | 763 |
| Reduced these significantly | 222 | 400 |
| Total Answered | 2,029 | 2,661 |
15.2.2. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Added to these significantly | 6.7% | 6.7% | 0.0% |
| Added to these a little | 12.6% | 11.7% | 0.9% |
| No effect | 42.4% | 37.9% | 4.5% |
| Reduced these a little | 27.4% | 28.7% | -1.3% |
| Reduced these significantly | 10.9% | 15.0% | -4.1% |
15.2.3. Compared with the previous paper based approach do you think that this has reduced or increased your administrative burden in dealing with your business tax affairs?
| Response | 2025 | 2024 |
|---|---|---|
| Added to these significantly | 125 | 202 |
| Added to these a little | 244 | 360 |
| No effect | 811 | 1,194 |
| Reduced these a little | 547 | 773 |
| Reduced these significantly | 193 | 297 |
| Total Answered | 1,920 | 2,826 |
15.2.4. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Added to these significantly | 6.5% | 7.1% | -0.6% |
| Added to these a little | 12.7% | 12.7% | 0.0% |
| No effect | 42.2% | 42.3% | 0.0% |
| Reduced these a little | 28.5% | 27.4% | 1.1% |
| Reduced these significantly | 10.1% | 10.5% | -0.5% |
16. HMRC communications and engagement
16.1. Usefulness of contact services
Survey recipients were asked, if they had used a particular channel and to rate how useful the service was that they received. Separate questions were asked about telephony, webchat, and the HMRC app.
The highest proportion of respondents for each channel rate the service as “poor”, though this proportion is substantially lower for the App. 29% of respondents rate the app as good or excellent, compared to 17% for webchat.
16.1.1. Webchat: Please rate the service you have used in terms of usefulness
| Rating | Count of Responses | As % of answered |
|---|---|---|
| Poor | 848 | 58.9% |
| Average | 345 | 24.0% |
| Good | 201 | 14.0% |
| Excellent | 45 | 3.1% |
| Total answered | 1,439 | 100% |
16.1.2. Telephony: Please rate the service you have used in terms of usefulness
| Rating | Count of Responses | As % of answered |
|---|---|---|
| Poor | 1,118 | 49.5% |
| Average | 534 | 23.7% |
| Good | 457 | 20.2% |
| Excellent | 148 | 6.6% |
| Total answered | 2,257 | not applicable |
16.1.3. App: Please rate the service you have used in terms of usefulness
| Rating | Count of Responses | As % of answered |
|---|---|---|
| Poor | 307 | 35.6% |
| Average | 306 | 35.5% |
| Good | 196 | 22.7% |
| Excellent | 53 | 6.1% |
| Total answered | 862 | not applicable |
16.1.4. Change over time: Webchat
Satisfaction with webchat remains broadly similar to the 2024 survey, with the only increase seen in “Average” responses.
16.1.5 If you have used HMRC’s webchat helpline service please rate the service you have used in terms of usefulness
| Response | 2025 | 2024 |
|---|---|---|
| Poor | 848 | 1,697 |
| Average | 345 | 640 |
| Good | 201 | 402 |
| Excellent | 45 | 105 |
| Total Answered | 1,439 | 2,844 |
16.1.6. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Poor | 58.9% | 59.7% | -0.7% |
| Average | 24.0% | 22.5% | 1.5% |
| Good | 14.0% | 14.1% | -0.2% |
| Excellent | 3.1% | 3.7% | -0.6% |
16.1.7. Change over time: Telephone
Telephony satisfaction has generally seen an increase, with a reduction of 5.2pp in ‘Poor’ responses, with most of the difference seen in an increase to ‘Average’ responses.
16.1.8. If you have used HMRC’s webchat helpline service please rate the service you have used in terms of usefulness
| Response | 2025 | 2024 |
|---|---|---|
| Poor | 1,118 | 2,315 |
| Average | 534 | 891 |
| Good | 457 | 783 |
| Excellent | 148 | 243 |
| Total Answered | 2,257 | 4,232 |
16.1.9. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Poor | 49.5% | 54.7% | -5.2% |
| Average | 23.7% | 21.1% | 2.6% |
| Good | 20.2% | 18.5% | 1.7% |
| Excellent | 6.6% | 5.7% | 0.8% |
16.1.10. Change over time: App
App satisfaction has substantially improved, with a 12.7pp reduction in “Poor” responses. This reduction is mirrored by increases in “average” responses with “Good” and “Excellent” responses seeing a smaller proportional increase.
16.1.11. If you have used HMRC’s webchat helpline service please rate the service you have used in terms of usefulness
| Response | 2025 | 2024 |
|---|---|---|
| Poor | 307 | 679 |
| Average | 306 | 394 |
| Good | 196 | 268 |
| Excellent | 53 | 64 |
| Total Answered | 862 | 1,405 |
16.1.12. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Poor | 35.6% | 48.3% | -12.7% |
| Average | 35.5% | 28.0% | 7.5% |
| Good | 22.7% | 19.1% | 3.7% |
| Excellent | 6.1% | 4.6% | 1.6% |
16.2. YouTube
32% of respondents had seen HMRC’s YouTube videos. This proportion has only seen a slight increase of 1.2pp since last year’s survey. Of those that did watch the videos, the majority rated them as ‘Good’, an improvement on last year’s survey where the highest proportion was ‘Average’. This shows a decrease in the proportion of both ‘Poor’ and ‘Average’ responses.
16.2.1. Have you watched any of HMRC’s YouTube videos?
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 973 | 1,490 |
| No | 2,105 | 3,405 |
| Total Answered | 3,078 | 4,895 |
16.2.2. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 31.6% | 30.4% | 1.2% |
| No | 68.4% | 69.6% | -1.2% |
16.2.3. How did you rate the YouTube videos?
| Response | 2025 | 2024 |
|---|---|---|
| Excellent | 57 | 85 |
| Good | 434 | 619 |
| Average | 384 | 662 |
| Poor | 91 | 183 |
| Total Answered | 966 | 1,549 |
16.2.4. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Excellent | 5.9% | 5.5% | 0.4% |
| Good | 44.9% | 40.0% | 5.0% |
| Average | 39.8% | 42.7% | -3.0% |
| Poor | 9.4% | 11.8% | -2.4% |
16.2.5. How did you find out about the YouTube videos?
| Response | 2025 | 2024 |
|---|---|---|
| HMRC communication | 502 | 892 |
| Gov.uk | 314 | 563 |
| 112 | 204 | |
| A friend/associate | 19 | 49 |
| Other | 22 | not applicable |
| Total answered | 969 | 1,708 |
16.2.6. Percentage of respondents
| Response | % of answered (2025 survey) | % of answered (2024 survey) | PPT change since 2024 |
|---|---|---|---|
| HMRC communication | 51.8% | 52.2% | -0.4% |
| Gov.uk | 32.4% | 33.0% | -0.6% |
| 11.6% | 11.9% | -0.4% | |
| A friend/associate | 2.0% | 2.9% | -0.9% |
| Other | 2.2% | not applicable | not applicable |
The ways that the YouTube videos are discovered do not appear to have changed substantially from the 2024 survey. This year’s survey allowed respondents to provide other methods of discovery, this included HMRC emails, YouTube, and professional networks.
16.3. Improvement in the last 12 months
There has been a slight improvement reported by respondents in the customer experience of engaging with HMRC, with a decrease of 5.1pp in the proportion of ‘Worse’ answers.
As with the 2024 survey, most agent respondents continue to report their customer experience as worse (66%), whereas business respondents remark it has stayed the same (66%).
16.3.1. Has your customer experience of engaging with HMRC improved during the last 12 months?
| Response | 2025 | 2024 |
|---|---|---|
| Worse | 1,095 | 1,806 |
| Stayed the same | 1,699 | 2,312 |
| Improved | 158 | 166 |
| Total Answered | 2,952 | 4,284 |
16.3.2. Percentage respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Worse | 37.1% | 42.2% | -5.1% |
| Stayed the same | 57.6% | 54.0% | 3.6% |
| Improved | 5.4% | 3.9% | 1.5% |
16.3.3. Business and Agent comparison: Has your customer experience of engaging with HMRC improved during the last 12 months?
| Response | Business | Agent |
|---|---|---|
| Improved | 5.7% | 4.3% |
| Stayed the same | 66.3% | 29.7% |
| Worse | 28.1% | 66.0% |
16.4. Legislative burden and impact
Impact of legislative changes were more pronounced in this year’s survey, with an 8.5pp increase in respondents reporting they had felt impacted in the last 12 months.
16.4.1. Do you feel the legislative burden in regard to tax compliance has changed during the last 12 months?
| Response | 2025 | 2024 |
|---|---|---|
| Worse | 1,711 | 2,104 |
| Stayed the same | 1,222 | 2,061 |
| Improved | 50 | 73 |
| Total answered | 2,983 | 4,238 |
16.4.2. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Worse | 57.4% | 49.6% | 7.7% |
| Stayed the same | 41.0% | 48.6% | -7.7% |
| Improved | 1.7% | 1.7% | 0.0% |
When asked about whether they feel the legislative burden of tax compliance had changed during the last 12 months, 57% believed it had worsened, an increase of 7.7pp from last year. The proportion who believed it had improved remains the same as last year.
16.4.3. Have you felt impacted by legislative changes particularly in regard to tax compliance during the last 12 months?
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 1,677 | 2,007 |
| No | 1,288 | 2,172 |
| Total answered | 2,965 | 4,179 |
16.4.4. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 56.6% | 48.0% | 8.5% |
| No | 43.4% | 52.0% | -8.5% |
16.5. Helpline response times
The majority of respondents rated the helpline response time as poor, however this is a smaller proportion than in the 2024 survey. The reduction is mirrored across all other answers, with ‘neither good or bad’ seeing the greatest proportional increase from last year.
16.5.1. If you have telephoned an HMRC helpline in the last year what was your impression of the response times?
| Response | 2025 | 2024 |
|---|---|---|
| Poor | 1,205 | 1,941 |
| Bad | 431 | 553 |
| Neither good nor bad | 301 | 308 |
| Good | 182 | 220 |
| Very good | 54 | 57 |
| Total Answered | 2,173 | 3,079 |
16.5.2. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Poor | 55.5% | 63.0% | -7.6% |
| Bad | 19.8% | 18.0% | 1.9% |
| Neither good nor bad | 13.9% | 10.0% | 3.8% |
| Good | 8.4% | 7.1% | 1.2% |
| Very good | 2.5% | 1.9% | 0.6% |
16.6. Business tax information and HMRC guidance
GOV.UK continues to be the main source that respondents use for business tax information, though this proportion saw a decrease from last year’s survey. There was also a reduction in respondents getting their information from agents or accountancy firms. All other categories saw increases, with the greatest increase (7pp) seen from publications.
16.6.1. Where do you find information to help your business tax affairs?
| Source | 2025 | 2024 |
|---|---|---|
| Gov.uk | 2,214 | 2,372 |
| Agents/accountancy firm | 1,745 | 2,347 |
| My professional body | 749 | 389 |
| Publications | 621 | 174 |
| Non-government contacts | 193 | 48 |
| Friends and family | 169 | 45 |
| In-house accountant | 148 | 79 |
| Other | 273 | 331 |
| Total answered | 6,112 | 5,785 |
16.6.2. Percentage of respondents
| Source | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| GOV.UK | 36.2% | 43.5% | -7.3% |
| Agents or accountancy firm | 28.6% | 43.0% | -14.5% |
| My professional body | 12.3% | 7.1% | 5.1% |
| Publications | 10.2% | 3.2% | 7.0% |
| Non-government contacts | 3.2% | 0.9% | 2.3% |
| Friends and family | 2.8% | 0.8% | 1.9% |
| In-house accountant | 2.4% | 1.4% | 1.0% |
| Other | 1.4% | 5.7% | -4.3% |
16.6.3. Accessibility and helpfulness of HMRC guidance
The majority of respondents found HMRC guidance “generally helpful” but “difficult to access.
16.6.4. Helpfulness: Looking across all the ways you obtain guidance from HMRC, how helpful would you say it is?
| Rating | 2025 | 2024 |
|---|---|---|
| Very helpful | 130 | 159 |
| Generally helpful | 1,141 | 1,357 |
| Average | 1,118 | 1,467 |
| Unhelpful | 317 | 286 |
| Very unhelpful | 133 | 129 |
16.6.5. Percentage of respondents
| Rating | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Very helpful | 3.6% | 4.0% | -0.4% |
| Generally helpful | 31.8% | 34.4% | -2.6% |
| Average | 31.2% | 37.1% | -6.0% |
| Unhelpful | 8.8% | 7.2% | 1.6% |
| Very unhelpful | 3.7% | 3.3% | 0.4% |
16.6.6. Accessibility: Looking across all the ways you obtain guidance from HMRC, how accessible would you say it is?
| Rating | 2025 | 2024 |
|---|---|---|
| Very accessible | 23 | 12 |
| Accessible | 173 | 77 |
| Difficult to access | 350 | 231 |
| Very difficult to access | 202 | 231 |
16.6.7. Percentage of respondents
| Rating | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
| Very accessible | 0.6% | 0.3% | 0.3% |
| Accessible | 4.8% | 1.9% | 2.9% |
| Difficult to access | 9.8% | 5.8% | 3.9% |
| Very difficult to access | 5.6% | 5.8% | -0.2% |
16.6.8. Problems with guidance
Customers were asked what GOV.UK guidance they used when starting or growing their business, as well as any issues they had with it. Issues with Companies House and the HMRC website were raised, as well is difficulty with understanding the VAT guidance and Corporation Tax guidelines.
16.6.9. What other guidance needed?
Respondents were also asked what other areas they needed guidance on, or better pointers to. Corporation Tax once again features heavily, with customers not finding the current guidance sufficient. Respondents suggest that an effective search engine to be able to navigate HMRC guidance would be helpful.
16.6.10 Communication of changes
79% of respondents, the clear majority, would prefer changes be made at the start of the tax year. This is an increase of 4.9pp from last year.
16.6.11 If there are changes to the tax system (especially if they are announced well in advance) when would you prefer the changes to be made?
| Timing | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| At the start of the tax year | 2,240 | 71.2% | 79.3% |
| At any time | 406 | 12.9% | 14.4% |
| At the start of the calendar year | 180 | 5.7% | 6.4% |
| Total answered | 2,826 | 89.8% |
16.6.12 Change over time: If there are changes to the tax system (especially if they are announced well in advance) when would you prefer the changes to be made?
| Timing | 2025 | 2024 |
|---|---|---|
| At the start of the tax year | 2,240 | 2,810 |
| At any time | 406 | 701 |
| At the start of the calendar year | 180 | 270 |
| Total Answered | 2,826 | 3,781 |
16.6.13. Percentage of respondents
| Timing | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| At the start of the tax year | 79.3% | 74.3% | 4.9% |
| At any time | 14.4% | 18.5% | -4.2% |
| At the start of the calendar year | 6.4% | 7.1% | -0.8% |
16.7. New methods of interaction with HMRC
The proportion of respondents who would ‘definitely not’ use these channels to interact with HMRC has seen a substantial decrease of 31.5pp, and this has resulted in increases to the proportions of customers who would consider making use of these alternative channels.
16.7.1. Would you consider using the following to interact with HMRC: You Tube or Skype or Webchat or SMS?
| Likelihood | 2025 | 2024 |
|---|---|---|
| Definitely not | 546 | 2,164 |
| Possibly not | 697 | 727 |
| Might or might not* | 882 | 761 |
| Probably | 593 | 508 |
| Definitely | 308 | 213 |
| Total answered | 3,026 | 4,373 |
*This answer was split into ‘Might’ (776) and ‘Might Not’ (106) in the 2025 survey
16.7.2. Percentage of respondents
| Likelihood | % of answered 2025 survey | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Definitely not | 18.0% | 49.5% | -31.5% |
| Possibly not | 23.0% | 16.6% | 6.4% |
| Might or might not* | 29.1% | 17.4% | 11.7% |
| Probably | 19.6% | 11.6% | 8.0% |
| Definitely | 10.2% | 4.9% | 5.3% |
16.7.3. Generative AI
In this year’s survey, respondents were asked if they had used a Generative Artificial Intelligence tool (for example, Chat GPT) to answer a tax question.
22% of respondents had used an AI tool for tax purposes in the 2025 survey, an increase of 9.7pp from 2024. This is likely due to increasing awareness and understanding of generative AI tools.
Of those that had used such a tool, over half received a useful answer that resolved their query, a large increase of 32.9pp compared to 2024, with a further 31% receiving an answer but confirming the validity elsewhere.
Whilst the increase in use of generative AI tools for tax purpose is not as pronounced, the increase in utility is noticeable.
16.7.4. Have you used a generative artificial intelligence system such as Chat GPT to seek an answer to a tax query?
| Response | Count of Responses | As % of total | As % of answered |
|---|---|---|---|
| Yes | 654 | 20.8% | 21.5% |
| No | 2,387 | 75.9% | 78.5% |
| Total answered | 3,041 | 96.7% | 100% |
16.7.5. Change over time: Have you used a generative artificial intelligence system such as Chat GPT to seek an answer to a tax query
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 654 | 519 |
| No | 2,387 | 3,864 |
| Total Answered | 3,041 | 4,383 |
16.7.6. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 21.5% | 11.8% | 9.7% |
| No | 78.5% | 88.2% | -9.7% |
16.7.7. Did you get an answer which you felt resolved your query?
| Response | 2025 | 2024 |
|---|---|---|
| Yes | 359 | 114 |
| Wasn’t sure and sought an answer elsewhere | 200 | 267 |
| No | 92 | 132 |
| Total Answered | 651 | 513 |
(Filtered to only include those who answered that they had used a Generative AI tool)
16.7.8. Percentage of respondents
| Response | % of answered 2025 | % of answered 2024 | PPT change since 2024 |
|---|---|---|---|
| Yes | 55.1% | 22.2% | 32.9% |
| Wasn’t sure and sought an answer elsewhere | 30.7% | 52.0% | -21.3% |
| No | 14.1% | 25.7% | -11.6% |
16.8. Written correspondence
Respondents were asked if they had received written correspondence from HMRC, either as an email or a letter. If they had found it easy to read, understand, or act on, they were asked more questions.
701 respondents declared that they had received an easy to process written communication. The majority of respondents answered ‘average’ across all 3 questions, though between 11 to 12% of survey respondents found an HMRC written communication to be easy or very easy to process.
16.8.1. How easy was it to read?
| How easy was it to read? | Count of Responses | As % of total |
|---|---|---|
| Average | 312 | 9.9% |
| Easy | 227 | 7.2% |
| Very easy | 155 | 4.9% |
| Total answered | 694 | 22.1% |
16.8.2. How easy was it to understand?
| How easy was it to understand? | Count of Responses | As % of total |
|---|---|---|
| Average | 360 | 11.4% |
| Easy | 220 | 7.0% |
| Very easy | 115 | 3.7% |
| Total answered | 695 | 22.1% |
16.8.3. How easy was it act on?
| How easy was it act on? | Count of Responses | As % of total |
|---|---|---|
| Average | 319 | 10.1% |
| Easy | 252 | 8.0% |
| Very easy | 127 | 4.0% |
| Total answered | 698 | 22.2% |
Respondents were subsequently asked if they had received written communication that they found difficult to read, understand, or act upon.
16.8.4. How difficult was it to read?
| How difficult was it to read? | Count of Responses | As % of total |
|---|---|---|
| Average | 272 | 8.6% |
| Difficult | 146 | 4.6% |
| Very difficult | 96 | 3.1% |
| Total answered | 514 | 16.3% |
16.8.5. How difficult was it to understand?
| How difficult was it to understand? | Count of Responses | As % of total |
|---|---|---|
| Average | 213 | 6.8% |
| Difficult | 175 | 5.6% |
| Very difficult | 123 | 3.9% |
| Total answered | 511 | 16.2% |
16.8.6. How difficult was it to act on?
| How difficult was it to act on? | Count of Responses | As % of total |
|---|---|---|
| Average | 190 | 6.0% |
| Difficult | 190 | 6.0% |
| Very difficult | 137 | 4.4% |
| Total answered | 517 | 16.4% |
16.8.7. Summary of difficulties
519 respondents received a difficult communication, less than the 701 that received an easy communication. Between 8% to 10% of respondents found the communication difficult or very difficult to read, understand, or act on. This is lower than the 11 to 12% who found these actions easy.
Respondents remarked that letters concerning tax code changes were difficult to deal with, often not giving enough information as to why the code had been changed, necessitating that the customer get in touch with HMRC to understand further. Sometimes respondents received multiple tax code notifications on the same day for the same employee, causing confusion. Other respondents remarked that notifications to submit tax returns were very confusing, raising issues with the difficulty of understanding Corporation Tax communications.
Survey recipients were also asked about specific improvements to letters they would want to see from HMRC. Letters not being in plain English continues to be a common complaint, as well as concerns that the tone of letters are too harsh and threatening. Additionally, some respondents felt that the numbers or email addresses provided on the communication were too general and would prefer numbers for more specific departments.
16.9. Business forms
When asked about which business forms are most problematic, Corporation Tax continues to be the most commonly cited form, as with 2024.
The forms are described as ‘a nightmare’ as well as ‘horrendous’, with common complaints being that they are too difficult for beginners or smaller companies to complete, with some respondents feeling that they needed to either be or hire a qualified accountant to complete them properly.
Respondents found that changes to the form 64:8 made it difficult to complete, as well as difficulty with printing and sending the complete form.
The question was asked: which forms respondents thought were good. VAT returns featured prominently, with respondents praising the simplicity and the ease of completing it online.
64:8 appears again in this question as an example of a good form, though this still came with concerns about the need to print and send a paper form.
16.10. Online services
Respondents were asked to comment in free text which tax processes would they like to use online that they cannot access now.
Several respondents raised concerns about no longer being able to submit tax returns online, having lost the ability to do this due to needing to use MTD compatible software.
Respondents were not aware of any free online methods of submitting returns to be MTD compliant, and the impact this has on small and low income businesses.
Corporation tax was another area respondents wished they could do online, particularly when it came to changing accounting periods as well as seeing balances. This was particularly an issue when these processes were completed by an accountant, and the business or agent themselves were unable to view them.
16.11. Conclusions
As ever, thank you to everyone who took part in the 2025 Tell ABAB Survey. We appreciate you taking the time to share your views and experiences and about the key critical issues as you see them.
ABAB’s engagement relationship with HMRC provides us with regular opportunities to deliver insights to their senior leaders, and to constructively challenge them to use the evidence you have provided.
Once again, we will use the findings from this survey to seek to influence the direction of HMRC’s work (where needed) and inform our priorities for the coming year.
In December, we will submit our ABAB Annual Report for 2025 to the Exchequer Secretary to the Treasury (XST). In that report, we will highlight findings from this survey, as we review HMRC’s progress and performance against the priorities we set in 2024.