Research and analysis

Agents, Small and Mid-Sized Businesses Customer Survey 2024

Published 17 July 2025

Research conducted by IFF Research for HM Revenue and Customs (HMRC).

Authors: Anna Campbell, Shannon Earl, Joe Gooding, Sarah Howell, Alistair Kuechel, Alex Pearson and Chelsea Wells.

Report Number: 831

July 2025

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

1. Executive summary

1.1 Introduction

HM Revenue and Customs (HMRC) commissioned IFF Research to carry out the tenth annual wave of customer research among Agents, Small Businesses, and Mid-Sized Businesses. These surveys, first launched in 2015, are a key source of insight into customer experiences and perceptions of the tax administration system.

To ensure comparability over time, the methodology remained broadly consistent with previous waves. Between October and December 2024, 4,599 telephone interviews were conducted using Computer Assisted Telephone Interviewing (CATI), with 1,500 Agents, 1,999 Small Businesses, and 1,100 Mid-Sized Businesses. In addition to the quantitative survey, 50 in-depth qualitative interviews were conducted between February and March 2025 to explore customer experiences in more detail.

1.2 Key findings

Around two-thirds of Small (68%) and Mid-Sized Businesses (66%) reported a good overall experience of HMRC in 2024, while only a third (33%) of Agents shared this view. Conversely, a minority of Small (10%) and Mid-Sized (9%) Businesses rated their overall experience as poor, compared to 34% of Agents.

The overall experience results for Small Businesses were broadly consistent with the previous wave, with 70% reporting a good experience in 2023 compared to 68% in 2024.

However, between 2023 and 2024, there was a significant drop in the number of Agents giving a positive rating from 37% to 33%. There was also a corresponding increase in those giving a poor rating (from 29% to 34%).

It is not possible to conduct similar time series analysis on the overall experience of Mid-Sized Businesses because the refinements made to the questionnaire in 2024 mean that results are not directly comparable. However, there are indications of an uptick in the overall experience of this group.

In 2024, Bayesian Network analysis was undertaken to identify the factors that most strongly influenced customers’ overall experience of HMRC and to understand how these factors influenced one another. The analysis revealed that the main influencers of overall experience varied across customer groups. Further explanation of the Bayesian Network analysis can be found in the standalone technical report.

For Agents, 3 factors were identified as having a strong influence on overall experience:

• how well HMRC resolved issues
• the acceptability of time taken to reach an end-result
• how good HMRC were at getting tax transactions right

For Small Businesses, 2 factors were identified as having a strong influence on overall experience:

• the ease of finding relevant information
• the acceptability of time taken to reach an end-result

For Mid-Sized Businesses, 3 factors were identified as having a strong influence on overall experience:

• the quality of information and guidance
• HMRC making it clear when everything was complete
• how well HMRC resolved issues or queries

Across all groups, most customers reported a good understanding of tax affairs and obligations and found them easy to manage. Around three-quarters of Small Businesses (73%) and Mid-Sized Businesses (77%) said they found managing their tax affairs and obligations easy. In contrast, 6 in 10 Agents (62%) reported the same in terms of dealing with clients’ tax affairs and obligations. Additionally, most customers felt the complexity of their tax affairs or their clients’ tax affairs had remained the same or become more straightforward. Specifically, this was reported by 72% of Agents, 80% of Small Businesses and 77% of Mid-Sized Businesses.

However, despite a widespread sense of ease, there were customers encountering challenges with meeting their tax obligations. Difficulties with at least 1 of the 5 types of tax asked about were reported by 44% of Agents, 16% of Small Businesses, and 20% of Mid-Sized Businesses. The 5 types of taxes included Corporation Tax, Customs and Excise taxes; PAYE; Self-Assessment for the self-employed or partnerships; and VAT. Additionally, 25% of Agents, 15% of Small Businesses and 18% of Mid-Sized Businesses reported an increase in the complexity of their tax affairs over the past year.

Between 2023 and 2024, customer perceptions of HMRC showed notable improvement in several key areas. Trust in the department rose across all 3 groups. It reached 57% among Agents (up from 49% in 2023), 72% among Small Businesses (up from 65%), and 70% among Mid-Sized Businesses (up from 64%). Confidence in the way HMRC is doing its job also increased across all 3 groups. Specifically, 37% of Agents expressed confidence (up from 27%), alongside 63% of both Small Businesses (up from 52%) and Mid-Sized Businesses (up from 56%).

However, there were also some negative shifts in customer perceptions. Perceptions of professionalism declined slightly among Agents (from 63% in 2023 to 57% in 2024) and Small Businesses (from 84% to 80%). Agreement that HMRC treated their business fairly also dropped among Small Businesses, falling from 80% to 76%.

Across all 3 groups, the majority of customers reported contacting HMRC or using its online services in the 12 months prior to the survey. Specifically, this included 98% of Agents, 84% of Small Businesses and 90% of Mid-Sized Businesses.

HMRC webpages on GOV.UK were the most commonly used channel across all groups, accessed by 90% of Agents, 74% of Mid-Sized Businesses and 65% of Small Businesses. More than 6 in 10 Small Businesses (62%) and Mid-Sized Businesses (65%) reported a positive experience of using HMRC webpages, compared to 53% of Agents. The number of Agents reporting a positive experience of using HMRC webpages dropped from 60% in 2023 to 53% in 2024.

Business Tax Accounts were the second most used channel to interact with HMRC by Small (50%) and Mid-Sized (62%) Businesses. This online service received generally positive feedback, with 76% of Small Businesses and 73% of Mid-Sized Businesses rating their experience as positive. Businesses often praised its clear layout, user-friendly design, and the convenience of being able to access all their tax information in one place.

Telephone helplines were used by 80% of Agents, making them the second most used channel to interact with HMRC amongst this audience. They were less frequently used by Mid-Sized Businesses (47%) and Small Businesses (32%). Across all 3 groups, a minority of users reported a positive experience of telephone helplines. Just 24% of Agents reported a positive experience in 2024, down from 28% in 2023. Positive experiences were more commonly reported by Small (47%) and Mid-Sized (47%) Businesses compared to Agents, but were still only reported by fewer than half. Qualitative research identified that negative experiences were  linked to long wait times and concerns over the expertise of call handlers.

2. Introduction

2.1 Background

HMRC commissioned IFF Research to undertake research with Agents, Small and Mid-Sized Businesses to provide insight into their customer experience and perceptions of HMRC. The definitions for each group are as follows:

• ‘Agents’ are individuals or businesses that deal with HMRC on behalf of clients in exchange for a fee
• ‘Small Businesses’ are businesses with fewer than 20 employees and under £10m turnover
• ‘Mid-Sized Businesses’ are businesses with turnover between £10 million and £200 million or 20 or more employees

Surveys targeting these customers groups were first launched in 2015, alongside surveys of 2 other key customer groups (Large Businesses and Individuals). Up until 2023, surveys with Individuals, Small Businesses and Agents (ISBA) were commissioned together, while Mid-Sized and Large Businesses were surveyed separately. From 2024, the commissioning of surveys was reconfigured with Agents, Small and Mid-Sized Businesses together, while Individuals and Large Businesses were commissioned separately.

2.2 Methodology

Quantitative fieldwork

A total of 4,599 telephone surveys were conducted using Computer Assisted Telephone Interviewing (CATI) between October and December 2024. This included 1,500 surveys with Agents, 1,999 with Small Businesses and 1,100 with Mid-Sized Businesses. Surveys lasted between 20 and 25 minutes on average.

The tracking of customer experiences and perceptions over time is a core aim of this research, so the methodology was kept broadly consistent with previous waves. However, some adjustments were made to existing questionnaires to harmonise them across the audiences where possible and to cover HMRC’s evolving strategic priorities. Specifically, new questions were added and changes were made to question wording and filtering.

There was a delay to the start of survey fieldwork due to the 2024 General Election. The mainstage survey fieldwork ran between October and December, when it was originally scheduled to run from September to November. The fieldwork therefore ran slightly later compared to the 2023 fieldwork.

The findings presented in this report have been weighted to make them representative of the underlying populations.

Differences by subgroup or to previous years included in this report are statistically significant at the 95% confidence interval. Where there were additional questions or changes to existing questions, time-series comparisons with previous surveys are not valid and are therefore not included in the report.

While the report primarily focuses on changes since 2023, some reference trends seen from 2021. 2021 could be seen as the return to normality following an increase in positivity seen across all customer groups in 2020 at the start of the pandemic. 

Detailed information on the methodological approach taken to the research – including sampling, questionnaire design and weighting - is available in a standalone technical report.

Qualitative fieldwork

Fifty follow-up interviews were conducted with survey participants who consented to be contacted for further research between February and March 2025. This included interviews with 18 Agents, 16 Small Businesses and 16 Mid-Sized Businesses.

The interviews lasted up to 60 minutes and explored the topics covered in the surveys in more depth. The interviews were conducted over the phone or online.

Findings from the qualitative interviews have been included in this report to add insight to the survey findings. They cannot be considered representative of the Agent, Small and Mid-Sized Business populations. 

3. Agents

3.1 Customer experience

Overall experience

Agents were asked to rate their overall experience of HMRC over the past 12 months on a scale of 1 (very poor) to 5 (very good). A third (33%) rated their overall experience as good (defined as a rating of 4 or 5). Around a third (34%) rated their overall experience as poor (defined as a rating of 1 or 2). The remaining 33% gave a rating of 3 on the 5 point scale, deemed to be a neutral response.

Since 2021, there has been a steady decline in the number of Agents reporting a positive experience of HMRC and a corresponding rise in negative ratings. In 2024, a significant drop can be seen in the number of Agents giving a good rating compared to 2023, from 37% to 33%. It also shows a significant increase in the number giving a poor rating, from 29% to 34%.

Smaller Agents reported a better overall experience of HMRC in 2024. Agents were significantly more likely to give a good rating if they were sole traders (50%), compared to those who had any number of employees (23%). A similar pattern was seen in relation to turnover: 58% of Agents with a turnover of less than £20,000 gave a good rating. In comparison, only 18% of those with a turnover of £85,000 or higher gave a good rating. Additionally, bookkeepers were notably more likely to give a good overall experience rating (51%), while accountancy firms were less likely (25%).

Bayesian Network analysis was conducted to identify the factors that most strongly influenced Agent’s overall experience of HMRC and to understand how these factors influenced one another. (Further explanation of the Bayesian Network analysis can be found in the standalone technical report.) This analysis identified three factors that had a strong influence on the overall experience of HMRC:

• how well HMRC resolved queries or issues
• the acceptability of the time taken to reach end-results
• how good HMRC were at getting tax transaction right

These 3 factors were interrelated. Perceptions of how good HMRC were at getting transactions right were directly influenced by views on how well queries or issues were resolved and the acceptability of the time taken to reach end-results. Furthermore, views on the acceptability of the time taken to reach end-results were directly influenced by views on how well queries or issues were resolved.

Three additional factors were identified as having an indirect influence on the overall experience of Agents. While these did not influence overall experience directly, they played a significant role in shaping factors that did. These indirect influences were:

• HMRC making it clear what steps were needed
• the quality of information and guidance
• the ease of finding relevant information

Further details on the strength of influence these factors had on overall experience can be found in the standalone technical report.

Findings for each of the factors identified as influencers of Agents’ overall experience of HMRC in 2024 are discussed in turn below.

Influencers of overall experience

There are 3 main influencers of overall experience, these are explained below:

Resolution of queries or issue

Agents had mixed views as to whether they felt HMRC were good at resolving queries or issues in the previous 12 months. An equal proportion rated the department as good and poor in this regard (36% each). The remaining 28% were neutral. These results are in line with 2023, when 37% rated HMRC as good at resolving queries or issues and 37% rated HMRC as poor.

During qualitative interviews, Agents that rated HMRC as poor at resolving queries or issues attributed this to challenges reaching HMRC staff who could handle their query or issue. This was sometimes linked to untrained staff and poor departmental coordination, with Agents noting frequent referrals and increasing difficulty in finding the right point of contact.

“The main issue is getting to speak to the relevant person. [They say] ‘I can’t answer that, but I’ll find someone who can’ and then 15 minutes later, they come back and they say: ‘I’m sorry, I can’t get through to that person’.”

“When you’ve got clients that have VAT refunds and that money gets transferred to a different department, be it CIS, Corporation Tax, or whatever else… trying to find out where it’s gone is not easy. So interdepartmental stuff is very difficult. Nobody wants to give you the full information because it’s a different department”.

On the other hand, Agents had also experienced helpful staff who were able to provide a resolution to the problem or query that they contacted HMRC about. A couple of Agents noted that they received useful information to resolve their query through the HMRC agents dedicated helpline. 

“The people I talk to know what they’re talking about and they try to be helpful.”

“Sometimes you’ll get on and you’ll get somebody that’s extremely helpful. They’ll help with the problem that you’ve got and you feel like the time that you’ve actually been waiting has been almost slightly worth it, as they’ve dealt with the problem that you’ve got.”

Acceptability of the time taken to reach end-results

Just over half (54%) of Agents felt the time taken for HMRC to reach an end result was unacceptable. Around 1 in 5 felt the time taken was acceptable (23%) or were neutral (23%). These results are in line with 2023, when 57% reported that the time taken to reach an end-result was unacceptable and 23% reported it was acceptable.

During qualitative interviews, issues with the time taken to reach an end result were linked to long telephone wait times. Agents reported that they would be passed on to several different departments before they found the appropriate person to deal with their query. This, coupled with long wait times, often made issue resolution arduous and time consuming.

“It was a very time-consuming, frustrating experience. I was passed around, whoever answered the phone first couldn’t help me, passed it to someone else, back in a queue, passed it to someone else, back in a queue…”

HMRC getting tax transaction right

Around half (52%) of Agents rated HMRC as good at getting transactions right, in line with findings from 2023 (49%).

“As a rule, they [HMRC] tend to get the information right, but then it’d be a bit worrying if they didn’t.”

Nearing 3 in 10 (28%) were neutral on the topic, and 1 in 5 (19%) rated HMRC as poor. This marks a decrease in the number of agents rating HMRC as poor at getting transactions right compared to 2023 (24%).

“The client ends up with perhaps either 2 refunds or being asked to pay tax twice because the things haven’t been taken into account. I had one experience where I got a copy of HMRC’s calculation for a client, which wasn’t at all in accord with what I had submitted.”

Secondary influencers

There are 3 main secondary influencers of overall experience, these are explained below:

Clarity on steps needed

Half (50%) of Agents felt that HMRC made clear the steps they needed to take, a similar proportion to 2023 (47%) . Just over a quarter (27%) responded neutrally and around a fifth (22%) disagreed.

During qualitative interviews, negative views around clarity of steps needed were linked to problems with issue resolution. Agents reported poor communication from HMRC staff when it came to guidance around resolving problems.

Quality of information and guidance

Close to half (48%) of Agents rated the quality of information and guidance that they looked for or received from HMRC in the 12 months prior to the survey as good. A third (34%) were neutral in their rating of the quality of information and guidance, and just under a fifth (18%) rated it as poor. Comparisons to 2023 are not possible due to a change in question wording.

Ease of finding relevant information

Forty-five percent of Agents reported that the information they needed from HMRC for their clients’ tax affairs was easy to find. Around a third (35%) were neutral about the experience of finding information, and a fifth (20%) said it was difficult. Comparisons to 2023 are not possible due to a change in question wording.

Experience of tax administration

There are 2 main experiences of tax administration, these are explained below:

Experience of client tax dealings

When asked about their experience dealing with their clients’ tax affairs over the 12 months prior to the survey, 6 in 10 Agents (62%) said it had been easy. A quarter (26%) felt it was neither easy nor difficult and 12% found it difficult.

Although most Agents reported finding it easy to manage their clients’ tax affairs, this did not mean challenges were absent. In fact, 44% of Agents reported encountering difficulties in the past 12 months with at least 1 of 5 types of tax. These included Corporation Tax; Customs and Excise taxes; PAYE; Self Assessment for the self-employed or partnerships; and VAT. Two-fifths (40%) reported difficulties with PAYE, while around a third experienced issues with Self Assessment, VAT, or Customs and Excise taxes (32% each). Slightly fewer reported difficulties with Corporation Tax (23%).

Agents spoken to in the qualitative interviews felt confident in managing their clients’ tax affairs. Agents attributed this to their experience, professional training, and digital systems and software with built-in checks. Such tools were said to have enhanced both the efficiency and accuracy of their work, allowing them to navigate complex tasks with greater assurance.

“The majority of the stuff I do is payroll, and that’s fine, and that’s actually easy because I’m using a computerised payroll package. So very little can go wrong with that, and the stuff that I set up and the amendments I make, I know I’ve been trained to do it, I know what I’m doing.”

Agents that had experienced difficulties managing their clients’ tax affairs explained that they tended to stem from administrative burden, HMRC errors, and accessing client information. Specific areas of tax identified as being particularly burdensome included Capital Gains Tax and the Construction Industry Scheme.

“I suppose CIS can be difficult because you submit it through a software which means the information’s not on your agent gateway and it’s not on the HMRC site.”

Accessing client information was a particular frustration for Agents who had experienced difficulties. They explained during qualitative interviews that there are restrictions on what they can and cannot view about client’s tax affairs. Having incomplete access to relevant information obstructs their ability to act efficiently on behalf of clients.

Agents generally felt that the complexity of their clients’ tax affairs had not changed significantly over the preceding 12 months. Two-thirds (65%) reported that the level of complexity remained about the same, a quarter (25%) believed it had increased, and only a small proportion (7%) felt it had become more straightforward.

Errors in client tax dealings

Half of Agents (51%) had encountered errors with their client’s tax dealings over the last year. This consisted of 31% that felt it was HRMC that made the error. Meanwhile, 17% that felt it was an error by both parties, and 3% that acknowledged it was their own error.

In qualitative interviews, Agents highlighted a range of HMRC-related errors affecting client tax affairs. Examples included data entry errors from paper returns, misalignments between agent-submitted information and HMRC calculations, and income being classified under the wrong categories.

“So, I logged into my agent account for VAT. It said that he didn’t owe anything, but we know that he’s got a credit sitting on his account because he’s been paying, let’s say, for example, £400 a week for the last 12 months or so. Now, on that account, it should tell me that at the moment you’ve got a credit of X, Y and Z. It doesn’t tell me that at all.”

Of those who had encountered errors, a quarter (26%) rated HMRC as good at resolving errors. Of the remainder, a third were neutral (31%) and two-fifths (42%) rated HMRC as poor at resolving errors.

3.2 Perceptions of HMRC

This section explores Agents’ broader views of HMRC as an organisation, based on their ratings across several important dimensions.

Trust

Trust in HMRC improved in 2024. Fifty-seven percent of Agents agreed that HMRC is an organisation they trust (up from 49% in 2023). A fifth (21%) disagreed (down from 25% in 2023), while 23% were neutral.

Confidence in HMRC

Confidence in HMRC improved in 2024. Thirty-seven percent of Agents reported that they were confident in the way HMRC are doing their job, up from 27% in 2023. Of the remainder, around a third were neutral (32%) and around a third were not confident (31%). This represents  a fall from 42% in 2023 of those who were not confident.

HMRC systems prevent mistakes

Views on HMRC systems preventing mistakes were mixed. Thirty-six percent of Agents agreed that HMRC have systems in place to help prevent customers from making mistakes, up from 32% in 2023. However, 30% disagreed (down from 34% in 2023) and 33% were neutral.

Fairness

Perceptions of fairness remained stable. Sixty-one percent of Agents agreed that HMRC treats their clients fairly, in line with 2023 (62%). There was a slight reduction in the proportion that disagreed with this statement, falling to 13% from 16% in 2023. A quarter were neutral (25%).

HMRC ensures all customers pay or receive the correct tax

Perceptions of HMRC’s accuracy in tax handling remain divided. Just under half (47%) of agents agreed that HMRC ensures all customers pay or receive the correct amount of tax. Around a quarter (23%) disagreed, while 29% were neutral. These findings are consistent with 2023.

Perceptions of HMRC varied across different types of Agents. Smaller Agents, specifically sole traders and those with a turnover below £20,000, were more likely to have positive perceptions of HMRC across all the metrics outlined above. For instance, 66% of sole traders and 69% of those with a turnover under £20,000 said they trusted HMRC. This compares with just 47% of those turning over between £85,000 and £500,000.

Similarly, newer Agents - those established within the last 5 years - tended to view HMRC more positively, compared with those who had been trading for over a decade.  For example, 71% of newer Agents said they felt that HMRC treated their clients fairly. This compares to 59% of Agents that had been in business for more than 10 years.

Perceptions were also strongly interrelated. Agents who gave positive ratings on one measure were more likely to do so across others. For example, among those confident in HMRC’s ability to do its job, 96% also described HMRC as professional, compared with just 17% of those who lacked confidence.

Relevance of information and services

HMRC information and services were widely considered relevant. Sixty-four percent of Agents felt that HMRC’s information and services were relevant to their clients’ needs. A quarter (26%) were neutral, while 9% disagreed. Direct comparisons to previous waves are not possible for this question due to a change in question wording.

Professionalism

Perceptions of professionalism declined in 2024. Fifty-seven percent of Agents agreed that HMRC are professional, down from 63% in 2023. A fifth (20%) disagreed (up from 15% in 2023), while 23% were neutral.

3.3 Interactions with HMRC

Channels used to interact with HMRC

Nearly all Agents (95%) reported contacting HMRC or using HMRC’s online services in the 12 months before participating in the survey. As presented in Table 3.1, the 2 most commonly used channels to interact with HMRC were webpages on GOV.UK (90%) and the dedicated Agent telephone helpline (80%). Around two-thirds of agents used postal communications (66%) and commercial software (65%). The least frequently used channel was HMRC’s digital assistant service, accessed by 38% of Agents during the same period.

Table 3.1 Channels agents used to contact HMRC in the last 12 months

Channels used to contact HMRC	Proportion using channel (%)
HMRC webpages on GOV.UK	90%
Agent dedicated line	80%
Post	66%
Commercial software provider	65%
Client’s Business tax account	60%
Sent an email to HMRC	53%
HMRC digital assistant	38%

[C3. Which of the following ways have you interacted with HMRC over the last 12 months? Base: All (1500)]

When considering broad communication methods, most Agents (78%) used a combination of the agent telephone helpline and online services to interact with HMRC. Just over 1 in 10 (12%) relied solely on online services, while a very small minority (1%) reported using only the telephone helpline.

Agents contacted HMRC most often to clarify tax rules or policies, manage payments and liabilities, and handle tax returns. Online channels were preferred for seeking clarification (38%) and submitting returns (30%), while telephone contact was more common for resolving payment issues (37%) and arranging refunds (30%).

When asked why they had chosen to get in touch by telephone, Agents most commonly cited personal preference, with 23% indicating this reason. This was followed by issues experienced on online channels (19%), and the belief that telephone helplines would be quicker (19%). Other reasons included the need to chase an existing action (17%) and the unavailability of certain online services or information (16%).

Experience of communication channels

Agents were asked to rate their experience of using HMRC’s webpages, the agent dedicated telephone helpline, and HMRC digital assistants. Attitudes varied considerably, with half (53%) rating their experience using HMRC webpages as good. In contrast, only 1 in 5 (19%) rated their experience as good with the HMRC digital assistant service.

HMRC webpages

Just over half (53%) of Agents that used HMRC webpages on GOV.UK rated their experience of using them as good. Meanwhile, a third (32%) were neutral about the experience and 16% rated it as poor. Compared to 2023, this reflects a decline in positive experiences (down from 60%) and an increase in negative experiences (up from 12%).

During qualitative interviews, Agents that expressed a poor experience of using HMRC webpages cited issues with site navigation and the accessibility of relevant information. They felt overwhelmed by the volume of content or struggled to identify what was pertinent to their query.

“The search facility on the revenue website is appalling. It is quicker to Google your question and then find the revenue website in the responses that Google has come up with to get to it.”

Agents that reported more positive experiences using HMRC webpages said that, while the volume of content sometimes introduced difficulties with navigation, guidance was well written and informative once located. They often viewed HMRC webpages as a valuable resource, particularly for complex topics.

“There’s a lot of detail in their guidance… but if you go on their online manual and have a look at certain taxes and what not, it can be very well written.”

HMRC Agents Dedicated Helpline

A quarter (24%) of Agents that used the agent dedicated helpline rated their experience as good, while a quarter (23%) were neutral and over half (52%) rated it as poor. Compared to 2023, this reflects a decline in positive experiences (down from 28%) and an increase in negative experiences (up from 46%).

During qualitative interviews, Agents that reported a more negative experience of telephone contact with HMRC commented on a perceived lack of expertise among call handler staff. Agents had noticed that this had become more of a problem in recent times.

“I always end up having to phone to double check that this is the correct form, or this is the correct whatever, or just to ask some advice. Okay. And then it’s hit and miss, [in terms of] how long you’re on hold for and quite honestly, and who you get on the other end of the phone - whether they actually know what they’re talking about.”

Although Agents encountered issues with the agent dedicated helpline, they were often reliant upon this service. During qualitative interviews Agents explained that they needed the helpline to resolve more complex queries or issues. They also relied on the helpline when needing to access client information that was not available to them through online services.

“If it’s something as simple as somebody wanting to just know what the balance is on their account, then obviously we can access it through our agent portal, but if it’s something that’s a bit more complex, that it needs somebody to access HMRC systems, then yeah, the telephone’s the next port of call.”

HMRC digital assistant

One in 5 Agents (19%) rated their experience of the digital assistant service as good. Meanwhile, more than half (54%) rated it as poor, and a quarter (26%) were neutral towards it. Comparisons to 2023 are not possible due to this being the first time Agents have been asked about this service.

During qualitative interviews, Agents occasionally highlighted digital assistant services as helpful for resolving straightforward queries. However, for more complex issues, Agents felt that human intervention was almost always necessary. For example, Agents described situations where the digital assistant (chatbot) was unable to resolve their problem and ultimately informed them that no advisors were available. This left them feeling that the only option was to return to the telephone helplines to reach a resolution.

“I haven’t tried the chatbot that often, but when I have tried it’s come up with a message: ‘I can’t deal with that. I need to pass it on to somebody’. But there’s nobody available.”

Online submission of information

Almost all Agents (94%) had submitted information online in the 12 months prior to the survey. This tended to be via commercial software (81%) or their client’s Business Tax Accounts (50%).

Seven in 10 Agents (70%) felt that HMRC made it easy to submit information to HMRC online, consistent with findings from 2023 (67%). Just under a fifth (17%) felt it was neither easy nor difficult, while 12% found it difficult.

4. Small Businesses

4.1 Customer experience

Overall experience

Small Businesses were asked to rate their overall experience of HMRC over the past 12 months on a scale of 1 (very poor) to 5 (very good). Just over two-thirds (68%) rated their overall experience as good, which is defined as a rating of 4 or 5. Meanwhile, 10% rated their overall experience as poor, defined as a rating of 1 or 2. The remaining 20% gave a rating of 3 on the five-point scale, deemed to be a neutral response. These results are in line with those from 2023.

Small Businesses that interacted with HMRC exclusively through online services in 2024 were more likely to rate their overall experience of HMRC as good, with 76% doing so. Additionally, businesses with a turnover of less than £40,000 per annum were also more likely to rate their experience positively, with 78% giving a good rating. So too were sole traders (73%) and businesses that thought the time taken for HMRC to reach an end-result was acceptable (92%).

Bayesian Network analysis was conducted to identify the factors that most strongly influenced Small Businesses’ overall experience of HMRC and to understand how these factors influenced one another. (Further explanation of the Bayesian Network analysis can be found in the standalone technical report.) This analysis identified two factors that had a strong influence:

• the ease of finding relevant information
• the acceptability of the time taken to reach end-results

These 2 factors were interrelated, with the ease of finding relevant information directly influencing the acceptability of the time taken to reach end-results.

The analysis identified 4 additional factors that influenced the ease of finding relevant information and the acceptability of time taken to reach end-results. These factors had an indirect relationship with Small Businesses’ overall experience. These were: HMRC made clear what steps were needed; how well HMRC resolved queries and issues; HMRC made it clear when everything was complete; and the quality of information and guidance.

Further details on the strength of influence these factors had on overall experience can be found in the standalone technical report.

Findings for each of the factors identified as influencers of Small Businesses’ overall experience of HMRC in 2024 are discussed in turn below.

Influencers of overall experience

There are 2 main influencers of overall experience, these are explained below:

Ease of finding relevant information

Nearing 6 in 10 Small Businesses (58%) reported that information they needed from HMRC for their tax affairs was easy to find. A fifth (22%) were neutral about the experience of finding information, and 16% said it was difficult. Comparisons to 2023 are not possible due to a change in question wording.

During qualitative interviews, customers who sought out information and guidance from HMRC noted that they could rely on locating the information online on HMRC webpages. However, it sometimes took a while to find the relevant information they were looking for.

“I went onto the site to find stuff, and apart from navigating around the site, which is still a bit clunky, some of the questions that I wanted were quite easily found, even though it was fairly specialised.”

“Generally, the information it’s going to be [online] somewhere. So, my first port of call would be a digital experience with them… I’ve not had the need [to phone HMRC] because all the information that we’ve been looking for has been resolved long before we got anywhere near that stage, so I’ve not even contemplated contacting them by phone.”

Acceptability of the time taken to reach end-results

Six in 10 Small Businesses (60%) felt that the time taken by HMRC to reach an end-result was acceptable, consistent with 2023 (60%). A fifth (20%) gave a neutral response and the remaining 16% rated the time taken as unacceptable, dropping from 19% in 2023.

Secondary influencers

There are 4 main secondary influencers of overall experience, these are explained below:

Resolution of queries or issue

Six in 10 Small Businesses (61%) rated HMRC as good at resolving queries or issues. A fifth (19%) gave a neutral response and the remaining 14% rated HMRC as poor. These findings are broadly consistent with 2023, when 64% of Small Business rated HMRC as good at resolving queries or issues and 14% rated them as poor.

Clarity on steps needed

Two-thirds of Small Businesses (66%) agreed that HMRC made it clear what steps they needed to take. Around 1 in 10 (11%) disagreed and around 1 in 5 (18%) gave a neutral response. These findings are in line with 2023, when 66% of Small Businesses agreed and 11% disagreed.

Clarity on when everything was completed

Over two-thirds (70%) of Small Businesses agreed that HMRC made it clear when everything was completed. Around 1 in 7 (15%) gave a neutral response and 1 in 10 (11%) disagreed. These findings are in line with 2023, when 71% of Small Businesses agreed and 11% disagreed.

Quality of information and guidance

Six in 10 (63%) Small Businesses rated the quality of information and guidance that they looked for or received from HMRC over the last 12 months as good. Around 1 in 10 (11%) rated it as poor and the remaining 23% held a neutral view. Comparisons to 2023 are not possible due to a change in question wording.

Experience of tax administration

There are 4 main experiences of tax administration, these are explained below:

Understanding tax obligations

Most Small Businesses had a clear understanding of their tax affairs and obligations, with only a small minority reporting experiencing difficulties with them. Small Businesses rated their understanding of taxes their business had paid in the last 12 months as follows:  

• VAT: 84% reported a good understanding of VAT, 10% gave a neutral response and 5% rated their understanding as poor
• PAYE: 78% reported a good understanding of PAYE, 12% gave a neutral response and 8% rated their understanding as poor
• Self Assessment: 77% reported a good understanding of Self Assessment, 13% gave a neutral response and 8% rated their understanding as poor
• Corporation Tax: 72% reported a good understanding of Corporation Tax, 16% gave a neutral response and 6% rated their understanding as poor
• Customs and Excise taxes: 60% reported a good understanding of Customs and Excise taxes, 27% gave a neutral response and 12% rated their understanding as poor

Use of agents

Around 7 in 10 Small Businesses (72%) used a tax agent or external accountant to deal with any of their tax affairs or obligations over the last 12 months. Corporation Tax was the most common area where Small Businesses sought support (21%), followed by Self Assessment (20%), PAYE and National Insurance (19%) and VAT (18%).

Among those who used a tax agent, most (73%) said HMRC made it easy for someone else to act on their behalf. Although high, this marks a slight decrease from 78% in 2023. One in 10 (10%) were neutral on the matter, while 4% said HMRC made it difficult.

Qualitative interviews revealed that Small Businesses used external agents to varying degrees. For example, in certain cases they outsourced all tax responsibilities, while others relied on agents for specific tasks while managing simpler areas in-house. The reasons for engaging tax agents were varied but commonly included the need to navigate complex tax affairs and the reassurance of compliance. Additionally, businesses sought access to expert advice and the desire to free up time for core business operations.

“All of the partners are employed elsewhere outside the business so that does increase how complicated the Self Assessments are which is why I don’t even entertain it because I don’t want to make any mistakes. So that’s why we rely on the accountant to do those bits and pieces for us.”

“It’s just so much easier [to use a tax agent]. If I was to do it myself, it’s another skill that I would have to learn.”

Managing tax affairs and obligations

Most Small Businesses found dealing with their tax affairs and obligations easy over the last 12 months, with 73% reporting it as easy. Less than 1 in 10 (8%) said they found it difficult and the remaining 15% gave a neutral response.

Qualitative interviews revealed that businesses who found their tax matters easy to manage often attributed this to the simplicity of their operations. They also credited the use of accounting software and digital tools or the support of knowledgeable external Agents.

“Being a small company, we don’t have a lot of complicated areas to deal with apart from the import side… things have changed over the last five years where – I think it’s 5 years anyway – where the import side has got a bit more, well, it’s not necessarily difficult but a bit more involved.”

“By using accountancy software which communicates directly with HMRC, at a click of a button, that [VAT return] information is sent to HMRC in the correct format that they require, and it is very easy, very efficient.”

In the last 12 months, 1 in 6 Small Businesses (16%) encountered difficulties with at least one tax area. This was despite generally high levels of understanding and many finding it easy to manage their tax affairs. PAYE was the most frequently cited (14%), followed by VAT (12%) and Customs and Excise taxes (11%). Fewer businesses reported issues with Self Assessment (9%) or Corporation Tax (8%).

Most Small Businesses (69%) reported that the complexity of their tax affairs and obligations had remained consistent over the past 12 months compared to the previous year. However, approximately 1 in 7 (15%) felt their tax obligations had become more complex, while around 1 in 10 (11%) believed they had become more straightforward.

Errors in tax dealings

One in 8 Small Businesses (13%) encountered errors with their tax dealings over the last 12 months. Of these, 7% felt it was HMRC made the error and 3% that felt it was an error by both parties. Meanwhile, 3% acknowledged it was their own error.

Of those who had encountered errors, two-fifths (40%) rated HMRC as good at resolving errors. Of the remainder, a fifth were neutral (20%) and two-fifths (40%) rated HMRC as poor at resolving errors.

4.2 Perceptions of HMRC

This section explores Small Businesses’ broader views of HMRC as an organisation, based on their ratings across several important dimensions.

Trust

Trust in HMRC improved in 2024. Around three-quarters (72%) of Small Businesses agreed that HMRC is an organisation they trust, up from 65% in 2023. One in 7 (15%) were neutral (down from 20% in 2023), while 11% disagreed (down from 14% in 2023).

Confidence in HMRC

Confidence in HMRC has improved in 2024. Just under two-thirds (63%) of Small Businesses said they were confident in the way HMRC is doing its job, up from 52% in 2023. A fifth (21%) were neutral (down from 30% in 2023) and 13% were not confident (down from 16% in 2023).

HMRC ensures all customers pay or receive the correct tax

Perceptions of HMRC ensuring correct tax payments has improved. Three-fifths (60%) of Small Businesses agreed that HMRC ensures customers pay or receive the correct amount of tax, up from 51% in 2023. One in 5 (20%) were neutral (down from 25% in 2023), and 12% disagreed (down from 16% in 2023).

HMRC are good at getting tax transactions right

Perceptions of HMRC’s accuracy in tax transactions remained stable. Around three-quarters (72%) of Small Businesses rated HMRC as good at getting tax transactions right, consistent with 2023 (73%). Close to a fifth (17%) were neutral and 6% rated HMRC as poor (down from 10% in 2023).

HMRC systems prevent mistakes

Views on HMRC systems preventing mistakes remained stable. Around half (52%) of Small Businesses agreed that HMRC has systems that help prevent customers from making mistakes, in line with 2023 (51%). Around a quarter (23%) were neutral, and 15% disagreed.

Fairness

Perceptions of fairness have declined in 2024. Just over three-quarters (76%) of Small Businesses agreed that HMRC treats their business fairly, down from 80% in 2023. Of the remainder, 13% held a neutral view and 6% disagreed.

Professionalism

Perceptions of professionalism have declined in 2024. Four-fifths (80%) of Small Businesses agreed that HMRC are professional, a drop from 84% in 2023. Of the remainder, 12% held a neutral view (up from 8% in 2023) and 7% disagreed.

Relevance of information and services

HMRC information and services were widely seen as relevant. Seven in 10 (70%) Small Businesses agreed that HMRC’s information and services were relevant to their business needs. A fifth (20%) were neutral and 6% disagreed. Direct comparisons to previous waves are not possible for this question due to a change in question wording.

Perceptions of HMRC varied across different types of Small Businesses. Smaller businesses, specifically those with a turnover of less than £40,000, were more likely to have positive perceptions of HMRC across all the metrics outlined above. For instance, 82% of businesses with a turnover of between £20,000 and £39,999 said they trusted HMRC. Similarly, 77% of businesses with a turnover under £20,000 said they trusted HMRC, compared to 67% of those turning over between £85,000 and £500,000.

Perceptions of HMRC were also related to businesses experience of the complexity of their tax affairs over the last 12 months. Those who experienced more complex tax affairs were less likely to have positive perceptions of HMRC. For instance, those who found their tax affairs to be more complex over the last 12 months were less likely to rate HMRC as professional, with 73% doing so. In comparison, 88% of those who had more straightforward tax affairs rated HMRC as professional.

4.3 Interactions with HMRC

Channels used to interact with HMRC

More than 8 in 10 Small Businesses (84%) reported contacting HMRC or using HMRC’s online services in the 12 months before participating in the survey. As presented in Table 4.1, the 3 most used channels to interact with HMRC were webpages on GOV.UK (65%), Business Tax Accounts (50%) and telephone helplines (32%). Fewer than 1 in ten 10 businesses had used HMRC’s digital assistant service (9%).

Table 4.1 Channels used by Small Businesses to interact with HMRC over the last 12 months

Channels used to contact HMRC	Proportion using channel (%)
HMRC webpages on GOV.UK	65%
Business tax account	50%
HMRC telephone helplines	32%
Commercial software provider	17%
Post	16%
Sent an email to HMRC	14%
HMRC digital assistant	9%

[C3. Which of the following ways have you interacted with HMRC over the last 12 months? Base: All Small Businesses (1999)]

When looked at in terms of broad communication methods, two-fifths of Small Businesses (40%) relied solely on online channels to interact with HMRC. Just over a quarter (28%) used a mix of both online and telephone channels, while a small minority (3%) reported using only HMRC telephone helplines to get in touch.

The most common reason Small Businesses chose to contact HMRC by telephone was personal preference, cited by 32%. This was followed by difficulties experienced with online channels (15%), and a belief that telephone helplines would provide a quicker resolution (13%).

Small Businesses contacted HMRC most often to deal with tax payment liabilities, to view, submit or complete tax returns and to seek clarification of tax rules or policies. Online channels were preferred for dealing with tax payment liabilities (36%) and submitting VAT returns (34%). Meanwhile, telephone contact was again preferred for dealing with tax payment liabilities (37%) or seeking clarification (20%).

Experience of communication channels

Small Businesses were asked to rate their experience of using the Business Tax Account, HMRC’s webpages on GOV.UK, HMRC’s telephone helplines and the HMRC digital assistant. Small Businesses gave the most positive feedback on the Business Tax Account, followed by HMRC’s GOV.UK webpages. Experiences with the telephone helpline and digital assistant were more mixed.

Business Tax Account

Around three-quarters (76%) of Small Businesses that used their Business Tax Account rated their experience as good. One in 8 (13%) were neutral about the experience and 6% rated it as poor. These findings are in line with 2023, when 74% of Small Businesses rated their experience as good and 8% rated their experience as poor.

Business Tax Account users were very positive about the service during qualitative interviews. They praised the clear layout, user-friendly design, and the convenience of being able to access all their tax information in one place.

“I always find that site incredibly clear and easy to use… even if I’m looking for something that I’ve not used before, I find that site incredibly easy to navigate… And as a result, I very rarely feel the need to take anything on from that, you know, to speak to someone or whatever.”

HMRC webpages on GOV.UK

Six in 10 (62%) Small Businesses who had used HMRC webpages on GOV.UK rated their experience as good. A quarter (24%) were neutral about the experience and 1 in 8 (13%) rated their experience as poor. These findings are in line with 2023, when 66% of Small Businesses rated their experience as good and 13% rated their experience as poor.

During the qualitative interviews, Small Businesses views on the quality of information and guidance were more varied. For example, customers said they found HMRC’s online information and guidance helpful, describing the materials as detailed and clearly written. Additionally, customers felt it was relatively easy to find the relevant information that they needed, through HMRC’s online guidance or via their Business Tax Account (which can be accessed through their government gateway account).

“The website is easy to use, clear, it has little help icons if you need to hover over it to understand what it means… Yeah. I’d say it’s user-friendly, it’s accessible when you need it to be.”

“[I used the] Government Gateway, which, which is my go-to if I just want to see updates on the account in general. I always find that site incredibly clear and easy to use.”

On the other hand, customers also challenges with HMRC’s guidance and information. They noted this often meant they had to seek support through alternative channel. These included guidance and information being too vague, lacking sufficient detail and practical examples to be useful or overly complex, making it difficult for non-experts to understand.

“I think at times it’s very difficult to interpret. Even their own people seem to [struggle]. It’s either their training or it’s worded in such a way that 7 people can read it and give seven different answers.”

“You put in [what you want to know] and if you don’t get the wording exactly right, it won’t come up with anything. Then you have to find things that are not really what you were after.”

HMRC telephone helplines

Views of HMRC’s telephone helplines were mixed: 47% of Small Businesses rated their experience as good, 32% as poor, and 20% were neutral. These proportions were broadly in line with those reported in 2023 (48% as good, 16% as neutral, and 35% as poor).

Qualitative interviews highlighted recurring frustrations among users of the helplines. Businesses reported that helpline staff often lacked the technical expertise needed to resolve complex queries, which led to repeated calls, inconsistent advice, and delays in resolving issues.

“We got a tax bill about five-and-a-half to six-thousand over what I was expecting, even if I was looking at the full 20% VAT, and I couldn’t work it out… I went and had the conversation with them [HMRC], and it was a case of going back time after time after time to try and get more and more information, and each person I spoke to gave me a different spin on it.”

“I just get a sense of an overwhelmed system who can’t cope with the volume, but I think that is because a lot of it is repeated business, it’s cases being reworked and reworked… they’re trained on a script, rather than on how the system works.”

Despite these issues, telephone helplines remained a commonly used support channel. Businesses often turned to telephone helplines when they encountered barriers through other channels (for example GOV.UK webpages and digital assistants). For others, speaking with someone directly was simply their preferred method of communication, especially for urgent concerns.

HMRC digital assistant

A third (33%) rated their experience of the digital assistant service as good, while two-fifths (40%) rated their experience as poor, and a quarter (24%) were neutral towards the service. No direct comparisons are available to previous waves as this was a new question for 2024.  

During qualitative interviews, Small Businesses that had used the HMRC digital assistant service often reported negative experiences. Customers found that the digital assistant (chatbot) was unable to resolve their queries, ultimately leaving them waiting for a human advisor to respond.

“The chatbot I found was misleading because whatever you asked it, it would always take you back to the ‘you’ll have to sit and wait and talk to an individual.”

Online submission of information

Six in 10 (60%) Small Businesses had submitted information to HMRC online in the last 12 months. Businesses submitted information online most commonly via their Business Tax Account (48%), commercial software (23%) or through other HMRC services (14%).

Around three-quarters (73%) of Small Businesses who submitted information to HMRC online in the last 12 months said they found it easy to do so. This was in line with 2023, where 72% found it easy to do so. While 15% held a neutral view, and 1 in 10 (11%) found it difficult to do, an increase from 8% of Small Businesses who found it difficult in 2023.

5. Mid-Sized Businesses

5.1 Customer experience

Overall experience

Mid-Sized Businesses were asked to rate their overall experience of HMRC over the past 12 months on a scale of 1 (very poor) to 5 (very good). Two-thirds (66%) rated their overall experience as good (defined as a rating of 4 or 5). While 9% rated their overall experience as poor (defined as a rating of 1 or 2). The remaining 24% gave a rating of 3 on the five-point scale, deemed to be a neutral response. The base of the question in the 2021-2023 Mid-Sized Business surveys was different (asked only of those that had contact with HMRC in previous 12 months) and so results are not comparable.

It should be noted that several changes were made to the Mid-Sized Business survey in 2024 to harmonise the 3 surveys. Consequently, this means throughout this chapter there are less comparisons to 2023 than the other customer groups.

Mid-Sized Businesses with a turnover of less than £3 million were more likely to rate their experience as good, with 69% doing so. In contrast, those with a turnover between £3 million and £9.9 million were less likely, with only 57% rating their experience as good. Those who had interacted with HMRC both online and over the telephone were also less likely to be positive about their overall experience of dealing with HRMC (59%). However, those who had interacted with HMRC through online services only were more likely to be positive about their overall experience of dealing with HMRC (74%).

Bayesian Network analysis was conducted to identify the factors that most strongly influenced Mid-Sized Businesses’ overall experience of HMRC in 2024. Additionally, the analysis aimed to understand how these factors influenced one another. (Further explanation of the Bayesian Network analysis can be found in the standalone technical report.) This analysis identified 3 factors that had a strong influence:

1. Quality of information and guidance
2. HMRC making it clear when everything was complete
3. How well HMRC resolved issues or queries

Two of the 3 factors that had a strong influence on Mid-Sized Businesses’ overall experience of HMRC were interrelated. Perceptions of how well issues or queries were resolved were directly influenced by perceptions of the quality of information and guidance.

Three additional factors that were identified as having an indirect influence on the overall experience of Mid-Sized Businesses. While these did not influence overall experience directly, they played a significant role in shaping the factors that did. These indirect influences were: HMRC making it clear what steps were needed; the acceptability of the time taken to reach end-results; and the ease of finding relevant information.

Further details on the strength of influence these factors had on overall experience can be found in the standalone technical report.

Findings for each of the factors identified as influencers of Mid-Sized Businesses’ overall experience of HMRC in 2024 are discussed in turn below.

Influencers of overall experience

There are 3 main influencers of overall experience, these are explained below:

Quality of information and guidance

Two-thirds of Mid-Sized Businesses (66%) rated the quality of information and guidance they had looked for or received as good. Just 1 in 10 (10%) rated it as poor and the remaining 23% gave a neutral response. This question is not directly comparable to previous years.

In qualitative interviews, Mid-Sized Businesses often found HMRC’s online guidance and information very helpful. For example, a few businesses described several different types of materials as helpful due to their clarity and detail.

“I guess the help pages are probably very good if you’ve got a query that you can find on there. Their help pages have actually helped with some payroll queries I’ve had lately so I guess that’s quite good.”

“I did find what I was looking for on the website and it was quite useful. There were links to a couple of relevant cases and it also kind of set out treatment and where treatment would differ depending on certain circumstances. So that was very useful.”

Clarity on when everything was completed

Over two-thirds of Mid-Sized Businesses (71%) agreed that HMRC made it clear when everything was completed, a significant increase from 59% in 2023. Meanwhile, 15% gave a neutral response and just 1 in 10 (11%) disagreed, a significant reduction from the 27% that disagreed in 2023.

Resolution of queries or issues

Six in 10 Mid-Sized Businesses (59%) rated HMRC as good at resolving any issues or queries. Meanwhile, a quarter (24%) gave a neutral response and around 1 in 7 (15%) rated this aspect of dealing with HMRC as poor. This question is not directly comparable to previous years.

During the qualitative interviews, businesses expressed that having unanswered queries from HMRC about their tax obligations made them feel stressed.

“It just feels like they’re quick to [react] when you do anything wrong, they’re quick to pounce on you. But when you need them, it’s just nothing.”

Secondary influencers

There are 3 main influencers of overall experience, these are explained below:

Clarity on steps needed

Around two-thirds of Mid-Sized Businesses (68%) agreed that HMRC made it clear what steps they needed to take, a significant increase compared to 2023 (63%). One in 5 (19%) gave a neutral response and just 12% disagreed, a reduction from 19% in 2023.

Acceptability of the time taken to reach end-results

Just over half (54%) of Mid-Sized Businesses felt that the time taken by HMRC to reach an end-result was acceptable. Meanwhile, 1 in 5 (20%) reported that the time taken was unacceptable and 1 in 4 (25%) gave a neutral response. This question is not directly comparable to previous years.

Ease of finding relevant information

Over half of Mid-Sized Businesses (56%) reported that it was easy to find relevant information needed for their tax affairs, from HMRC. Around a quarter (27%) held a neutral view and around 1 in 7 (14%) said it was difficult. This question is not directly comparable to previous years.

Experience of tax administration

There are 4 main experiences of tax administration, these are explained below:

Understanding tax obligations

Most Mid-Sized Businesses had a clear understanding of their tax obligations, with only a small minority reporting difficulties. Mid-Sized Businesses rated their understanding of taxes their businesses had paid in the last 12 months as follows:

• VAT: 90% reported a good understanding of VAT, 7% gave a neutral response and 2% rated their understanding as poor
• PAYE: 88% reported a good understanding of PAYE, 8% gave a neutral response and 2% rated their understanding as poor
• Self Assessment: 72% reported a good understanding of Self Assessment, 16% gave a neutral response and 7% rated their understanding as poor
• Corporation Tax: 72% reported a good understanding of Corporation Tax, 17% gave a neutral response and 7% rated their understanding as poor
• Customs and Excise taxes: 62% reported a good understanding of Customs and Excise taxes, 24% gave a neutral response and 12% rated their understanding as poor

Use of agents

Around 8 in 10 Mid-Sized Businesses (84%) used a tax agent or external accountant to support with their tax affairs over the past 12 months. Corporation Tax was the most common area where Mid-Sized Businesses sought support (37%), followed by PAYE and National Insurance (17%), and VAT (15%).

Most Mid-Sized Businesses that used a tax agent or external accountant said HMRC made it easy for someone else to act on their behalf (73%). Just under 1 in 10 (7%) were neutral on the matter, while 4% felt HMRC made it difficult.

Qualitative interviews showed that businesses varied in how they used Agents. There were those who delegated all tax responsibilities, while others used Agents selectively for more complex tasks, managing the rest internally.

Businesses gave several reasons for using tax agents, including the need to manage complex tax requirements and the reassurance of staying compliant. They also sought access to specialist advice and the ability to concentrate internal resources on operational priorities.

“We are not that big that we can only justify one [tax specialist]. So, we pay a company of accountants who have a specialist tax department.”

Managing tax affairs and obligations

When asked how easy or difficult they have found it to deal with their tax affairs or obligations over the last 12 months, most Mid-Sized Businesses said they found it easy (77%). Just 5% said they found it difficult and the remaining 15% provided a neutral response.

During the qualitative interviews, businesses that found it easy to manage their tax affairs or obligations attributed this to having the necessary knowledge and experience. Others credited their ease to relying on the expertise of external Agents. Others explained that their obligations were straightforward, which made them easier to handle. Several Mid-Sized Businesses also noted that accounting software and HMRC’s digital services had contributed to simplifying their tax affairs in recent years.

“We’re very simple, we only pay VAT and corporation tax, on top of PAYE and NI.”

“That’s all very simple. It’s just the same software. It’s really simple never a problem there… Then after corporation tax, you get told what to pay and when to pay, so yeah, I don’t think I have any real complications my side.”

In the last 12 months, a fifth (20%) of Mid-Sized Businesses encountered difficulties with at least one tax area. This is despite generally high levels of understanding and many finding it easy to manage their tax affairs. Customs and Excise taxes were the most frequently cited (17%), followed by PAYE (15%) and VAT (13%). Fewer businesses reported issues with Self Assessment (11%) and Corporation Tax (8%).

During the qualitative interviews, of those who did mention difficulties dealing with their tax affairs, these tended to relate to frustrations with Corporation Tax. Additionally, challenges were reported with dealing with VAT returns or taxes related to the import and export of goods.

“I just feel with the whole changes to the EU and the Customs and Excise processes. I just find them very complex within this company.”

Two-thirds of Mid-Sized Businesses (68%) rated the complexity of their tax affairs or obligations as about the same over the past year compared to the preceding 12 months. However, around a fifth (18%) felt they had become more complex, while 1 in 10 (9%) said they had become more straightforward. 

Errors in tax dealings

One in 5 Mid-Sized Businesses (19%) had encountered errors with their tax dealings over the last 12 months. This consisted of 12% that felt HMRC made the error, 5% that felt it was an error by both parties and 2% that acknowledged it was their own error.

“The previous direct debit had been cancelled so I set up the direct debit again…it said the money would be collected but it was not collected. If [I] had known it wasn’t going to be collected, obviously the payment would have been made earlier. It was a very large amount and so the large interest bill came through.”

Of those who had encountered errors, nearly a third (31%) rated HMRC as good at resolving errors. Of the remainder, around a third were neutral (30%) and just under two-fifths (38%) rated HMRC as poor at resolving errors.

5.2 Perceptions of HMRC

This section explores Mid-Sized Businesses’ broader views of HMRC as an organisation, based on their ratings across several important dimensions.

Trust

Trust in HMRC has improved in 2024. Seven in 10 (70%) of Mid-Sized Businesses agreed that HMRC is an organisation they trust, up from 64% in 2023. One in 5 (19%) were neutral, while 11% disagreed.

Fairness

Perceptions of fairness have improved in 2024. Over three-quarters (79%) of Mid-Sized Businesses agreed that HMRC treats their business fairly, an increase from 69% in 2023. Of the remainder, 13% were neutral and 6% disagreed.

Confidence in HMRC

Confidence in HMRC has increased in 2024. Nearly two-thirds (63%) of Mid-Sized Businesses said they were confident in the way HMRC is doing its job, up from 56% in 2023. Around a quarter (23%) were neutral and 11% were not confident (down from 17% in 2023).

HMRC are good at getting tax transactions right

Perceptions of HMRC’s accuracy in tax transactions have improved in 2024. Around three-quarters (73%) of Mid-Sized Businesses rated HMRC as good at getting tax transactions right, up from 65% in 2023. Around 1 in 6 (16%) were neutral and 8% rated HMRC as poor (down from 13% in 2023).

HMRC systems prevent mistakes

Views on HMRC systems preventing mistakes have improved since 2024. Half (51%) of Mid-Sized Businesses agreed that HMRC has systems that help prevent customers from making mistakes, up from 43% in 2023. A quarter (27%) were neutral and 14% disagreed (down from 18% in 2023).

Professionalism

Perceptions of professionalism remained stable in 2024. Three-quarters (76%) of Mid-Sized Businesses agreed that HMRC are professional, broadly consistent with 2023 (74%). Around 1 in 6 were neutral, while 5% disagreed.

HMRC ensures all customers pay or receive the correct tax

Perceptions of HMRC ensuring correct tax payments have declined in 2024. Almost two-thirds (62%) of Mid-Sized Businesses agreed that HMRC ensures customers pay or receive the correct amount of tax, down from 68% in 2023. Just over 1 in 5 (22%) were neutral and 12% disagreed, up from 9% in 2023.

Relevance of information and services

HMRC’s information and services were widely seen as relevant. Around three-quarters (74%) of Mid-Sized Businesses agreed that HMRC’s information and services were relevant to their business. One in 5 (20%) were neutral and 5% disagreed. Direct comparisons to previous waves are not possible for this question due to a change in question wording.

Smaller Mid-Sized Businesses, with fewer than 20 employees, were less likely to have positive perceptions of HMRC. For example, they were less likely to have trust in HMRC (66%) and view HMRC staff as professional (72%). Additionally, only 47%, agreed that HMRC have systems which are good at preventing customers from making mistakes, and 58% agree that HMRC ensures all of its customers pay or receive the correct amount of tax.

5.3 Interactions with HMRC

Channels used to interact with HMRC

Nine in 10 Mid-Sized Businesses (90%) reported contacting HMRC or using HMRC’s online services in the 12 months before participating in the survey. As presented in Table 5.1, the most used channels to interact with HMRC were webpages on GOV.UK (65%), followed by Business Tax Accounts (62%) and telephone helplines (47%). Other channels were used by just over a third of Mid-Sized Businesses or fewer. Around 1 in 7 had used HMRC’s digital assistant service (14%).

Table 5.1 Channels used by Mid-Sized Businesses to interact with HMRC in the last 12 months

Channels used to contact HMRC	Proportion using channel (%)
HMRC webpages on GOV.UK	74%
Business tax account	62%
HMRC telephone helplines	47%
Commercial software provider	33%
Sent an email to HMRC	24%
Post	22%
HMRC digital assistant	14%

[C3. Which of the following ways have you interacted with HMRC over the last 12 months? Base: All Mid-Sized Businesses (1,100)]

When looked at in terms of broad communication methods, around two-fifths (43%) used a mix of both online and telephone channels to contact HMRC. Three in 10 (32%) relied solely on online channels, while a very small minority (3%) reported using only telephone helplines to get in touch with HMRC.

The most common reasons for choosing to interact with HMRC by telephone were personal preference (29%) and the view that telephone helplines would be quicker (23%). Convenience also played a role, with 1 in 10 (10%) saying telephone contact was easier to use. In some cases, businesses had attempted to complete their query online but were unable to do so (9%).

Mid-Sized Businesses contacted HMRC most often to query tax payments or liabilities, or to clarify tax rules or policies. Online channels were most commonly used to query tax payments or liabilities (40%), clarify tax rules (27%), and to view, submit or complete a tax return (23%). Telephone contact was most commonly used to query tax payments or liabilities (42%). This was followed by clarifying tax rules (23%), querying a tax repayment or refund (12%), or regarding a submission issue (12%).

Experience of communication channels

Mid-Sized Businesses were asked to rate their experience of using HMRC’s webpages, the Business Tax Account, the telephone helpline, and the HMRC digital assistant. More than half had positive experiences with their Business Tax Account (73%) and HMRC webpages (65%). Meanwhile, less than half had positive experiences with the HMRC telephone helpline (46%) and the digital assistant (44%).

Business Tax Account

Over 7 in 10 Mid-Sized Businesses (73%) rated their experience of using their Business Tax Account as good. Just 6% rated it as poor and 18% gave a neutral response. There is no direct comparison to 2023 available as this was not previously asked to Mid-Sized Businesses.

Like Small Businesses, Mid-Sized Business users of the Business Tax Account spoke highly of the service during qualitative interviews. They particularly valued its clear layout, intuitive design, and the convenience of having all their tax information easily accessible in one central location.

“You can see anything in the Business Tax Account so, as I say, I don’t really need to contact them about anything.”

HMRC webpages

Around two-thirds of Mid-Sized Businesses (65%) had a good experience using the HMRC webpages on GOV.UK. One in 5 (21%) had a neutral experience, while around 1 in 7 (14%) had a poor experience. There is no direct comparison to 2023 available as this was not previously asked to Mid-Sized Businesses.

During the qualitative interviews, Mid-Sized Businesses that rated HMRC’s webpages positively described the online resources as detailed, clearly written and helpful in addressing their queries. Mid-sized Businesses highlighted the value of case studies, which provided practical examples and clarified how rules might apply in different circumstances.

“I guess their help pages are probably very good if you’ve got a query that you can find on there. Their help pages have helped actually with some payroll queries I’ve had lately so I guess that’s quite good.”

“I did find what I was looking for on the website and it was quite useful. There were links to a couple of relevant cases and it also kind of set out treatment and where treatment would differ depending on certain circumstances. So that was very useful.”

However, not all experiences were positive. Those with less positive experiences described the information as “too vague”, lacking sufficient detail to be actionable. Others found it overly complex, making it difficult to interpret without specialist knowledge. In addition, difficulties in navigating the GOV.UK website were commonly raised. Mid-sized Businesses expressed frustration with the site’s search function, which they felt often failed to return relevant results.

“You know, even if you ask Google a question, it’ll come up with an answer that is actually relevant. You go onto GOV.UK and ask a question, and this search engine comes up with garbage.”

HMRC telephone helplines

Views of the HMRC telephone helpline was more mixed, with under half of Mid-Sized Businesses rating their experience as good (46%). Around 3 in 10 rated their experience as poor (28%), while a quarter (24%) had a neutral experience. There is no direct comparison to 2023 available as this was not previously asked to Mid-Sized Businesses.    

During the qualitative interviews, customers expressed frustration with telephone helpline wait times and advisors not being able to resolve issues. Examples give highlighted cases where advisors were not able to answer their queries or gave inconsistent information.

“To get through to them on the phone sometimes will take 2 or 3 goes [because the respondent does not have time to wait on hold for a long time] and I think that has probably worsened over the last year or two.”

HMRC digital assistant

Less than half of Mid-Sized Businesses (44%) rated their experience of using the HMRC digital assistant (chatbot) as good. Three in 10 (29%) had a poor experience, while the remaining 26% provided a neutral response. Comparisons to previous years are unavailable as this was a new question for 2024.

During qualitative interviews, Mid-Sized Businesses reported encountering issues obtaining the information they required during interactions with digital assistants. Others expressed frustration with HMRC’s digital assistant, citing limitations in its ability to provide meaningful support. They described finding the digital assistant (chatbot) service as unhelpful and inflexible and voiced concerns about an increasing reliance on automated services.

“A chat bot at the moment really doesn’t work because they’re just programmed with a set number of responses, a set of static responses.”

“If there’s a drift towards using chat bot and that sort of thing, I think that would be a move in the wrong direction in my view..”

Online submission of information

Three-quarters of Mid-Sized Businesses had submitted information to HMRC online in the last 12 months. Customers submitted information online via their Business Tax Account (56%), a commercial software provider (50%) and other HMRC services (19%).

Over three-quarters of Mid-Sized Businesses who submitted information to HMRC online said they found it easy to do so (77%). Meanwhile, just 6% said it was difficult and 16% held a neutral view.  Comparisons to previous years are unavailable as this was a new question for 2024.