Agents, Small and Mid-Sized Businesses Customer Survey 2025

Question 1

1. Glossary

Accepted Answer

Table 1.1 Terminology and abbreviations used in this report

Term	Definition
Agent Dedicated Line (ADL)	The Agent Dedicated Line is the phone line agents can use to contact HMRC about Self Assessment or PAYE on behalf of their clients.
Business Tax Account (BTA)	An online HMRC service that allows businesses to manage their tax affairs, including taxes such as VAT, PAYE, Self Assessment and Corporation Tax.
Corporation Tax	Corporation Tax is a tax imposed on the profits of companies or associations.
Customs and Excise	Taxes and duties charged on certain goods, including goods being imported or exported.
HMRC’s digital assistant	HMRC’s digital assistant includes customers using the chatbot (an automated natural language processing tool to provide a response) and webchat (an adviser-led response).
Pay As You Earn (PAYE)	PAYE is a system where income tax and National Insurance contributions are automatically deducted from employees’ wages by their employer and sent directly to HMRC.
Self Assessment	Self Assessment is the system used by HMRC to collect Income Tax for those who are self-employed.
Value Added Tax (VAT)	VAT is an indirect consumption tax levied on the value added at each stage of production and distribution, ultimately paid by the end consumer.

Question 2

2. Executive summary

Accepted Answer

2.1 Introduction

HM Revenue and Customs (HMRC) commissioned IFF Research to carry out customer research among Agents, Small Businesses, and Mid-Sized Businesses. First launched in 2015, these annual surveys provide 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 September and November 2025, 5,659 telephone interviews were conducted using Computer Assisted Telephone Interviewing (CATI). This included interviews with 1,860 Agents, 2,200 Small Businesses, and 1,599 Mid-Sized Businesses. In addition to the quantitative survey, 60 in-depth qualitative interviews were conducted between January and March 2026 to explore customer experiences in more detail.

2.2 Headline insights

Customers were comfortable using HMRC’s digital channels for routine activities. More complex or case-specific issues continue to drive contact through telephone helplines.
Difficulty locating clear and relevant information - particularly for complex or niche scenarios - is a persistent barrier affecting customer experience.
Customers generally report positive experiences when completing straightforward tasks. Experience breaks down in more complicated journeys, involving unfamiliar issues and multiple follow-ups.
While telephone helplines remain a critical route for resolving complex issues, inconsistent adviser expertise, long wait times and repeated transfers continue to undermine experience.
Most customers report stable or improving simplicity in managing tax affairs. A notable minority are experiencing increasing complexity driven by changes to tax rules and processes.

2.3 Key findings

Interactions with HMRC

Most customers across all 3 groups reported contacting HMRC or using its online services in the 12 months prior to the survey. This was 98% of Agents, 88% of Mid-Sized Businesses and 80% of Small Businesses.

HMRC webpages on GOV.UK were the most used communication channel, accessed by 93% of Agents, 80% of Mid-Sized Businesses and 65% of Small Businesses. Experiences of using HMRC webpages were generally positive, particularly among businesses. Around 7 in 10 Small (70%) and Mid‑Sized Businesses (69%) reported a positive experience, compared with just over half of Agents (55%). Encouragingly, negative experiences of HMRC webpages declined across all groups between 2024 and 2025. Negative experiences declined from 16% to 12% among Agents, from 13% to 8% among Small Businesses, and from 14% to 6% among Mid‑Sized Businesses.

Business Tax Accounts were the second most used channel to interact with HMRC for Small (50%) and Mid-Sized (66%) Businesses. This online service received generally positive feedback from users, with 79% of Small Businesses and 75% of Mid-Sized Businesses rating their experience as positive.

The use of telephone helplines was also prominent. The Agent Dedicated Line (ADL) was used by 68% of Agents, making it their second most used channel. Telephone helplines were less frequently used by Mid-Sized Businesses (51%) and Small Businesses (28%) but remained the third most widely used channel for both groups. Across all customers, less than half of helpline users reported a positive experience of telephone helplines. Around 2 in 5 Small (43%) and Mid-Sized (40%) Businesses reported a positive experience, compared to just 27% of Agents who rated the ADL positively. However, there are signs of improvement for Agents: the proportion reporting a negative experience of the ADL fell between 2024 and 2025 from 52% to 44%.

Qualitative interviews demonstrated that customers turned to telephone helplines as the fastest way to resolve more complex or highly specific issues. However, negative experiences were driven by inconsistent knowledge and professionalism of HMRC telephone advisers, long wait times and being passed between multiple departments.

Customer experience

Seven in 10 Small Businesses (70%) and 64% of Mid-Sized Businesses reported a good overall experience of HMRC in 2025. Just over a third of Agents shared this view (35%). Conversely, a minority of Small (10%) and Mid-Sized (11%) Businesses rated their overall experience as poor, compared to 32% of Agents.

The following two elements of customer experience declined for Mid-Sized Businesses in 2025:

agreement that HMRC treats their business fairly (75%, down from 79% in 2024)
agreement that HMRC are good at getting tax transactions right (67%, down from 73% in 2024)

Experience of tax administration

Around 3 in 4 Small Businesses (76%) and Mid-Sized Businesses (75%) said they found managing their tax affairs and obligations easy over the last 12 months. Only small proportions reported difficulties (5% of Small Business and 7% of Mid-Sized Businesses). Among agents, 62% reported finding it easy to deal with clients’ tax affairs and obligations, while 12% found it difficult.

Analysis was undertaken to identify the factors that influenced customers’ experiences of dealing with their tax affairs, and to understand how these factors interacted. The analysis identified a small set of key drivers of experience across audiences. Ease of finding relevant information was a consistent influence for Agents, Small Businesses and Mid‑Sized Businesses. Perceptions of fair treatment by HMRC were influences for Small Businesses and Mid‑Sized Businesses.

For Agents, 2 factors were identified as having a strong influence on experience of dealing with their clients’ tax affairs:

Ease of finding relevant information
Confidence in the way HMRC are doing their job

For Small Businesses, 3 factors were identified as having a strong influence on experience of dealing with their tax affairs:

Ease of finding relevant information
Experience of challenges with tax affairs
Perceptions of whether HMRC treated their business fairly

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

Ease of finding relevant information
Perceptions of how good HMRC are at getting tax transactions right
Perceptions of whether HMRC treated their business fairly

Most customers felt the complexity of their tax affairs or their clients’ tax affairs had remained stable over the last 12 months compared to the previous year. This was reported by 74% of Small Businesses, 71% of Mid-Sized Businesses and 64% of Agents. Among Small Businesses, the proportion reporting the same level of complexity increased from 69% in 2024 to 74% in 2025. The share saying their tax affairs had become more straightforward decreased, from 11% to 8% over the same period.

That said, a notable minority reported increasing complexity. This was particularly prominent for Agents, when over 1 in 4 (27%) felt complexity had risen, compared with 14% of Small Businesses and 17% of Mid‑Sized Businesses.

Some customers reported experiencing difficulties dealing with the taxes they pay or manage on behalf of clients. Customers were asked about difficulties with 5 types of tax: Corporation Tax, Customs and Excise taxes, PAYE, Self-Assessment for the self-employed or partnerships, and VAT. Difficulties with at least one of the 5 types of tax were reported by 44% of Agents, 20% of Mid-Sized Businesses and 14% of Small Businesses.

Perceptions of HMRC

The following two elements relating to perception of HMRC declined for Mid-Sized Businesses in 2025:

confidence in the way HMRC are doing their job (decreased from 63% in 2024 to 58% in 2025)
agreement that HMRC ensures all its customers pay or receive the correct amount of tax (decreased from 62% in 2024 to 56% in 2025)

Question 3

3. Introduction

Accepted Answer

3.1 Background

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

Agents: individuals or businesses that deal with HMRC on behalf of clients in exchange for a fee
Small Businesses: businesses with fewer than 20 employees and under £10m turnover
Mid-Sized Businesses: 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 customer groups (Large Businesses and Individuals). 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 was reconfigured with Agents, Small Businesses and Mid-Sized Businesses together, while Individuals and Large Businesses were commissioned separately.

3.2 Methodology

Detailed information on the methodological approach taken to the research is available in a standalone technical report.

Quantitative fieldwork

A total of 5,659 telephone surveys were conducted using Computer Assisted Telephone Interviewing (CATI) between September and November 2025. This included 1,860 surveys with Agents, 2,200 with Small Businesses and 1,599 with Mid-Sized Businesses. Surveys lasted between 20 and 25 minutes on average.

The findings presented in this report have been weighted to make them representative of the underlying populations of Agents, Small Businesses and Mid-Sized Businesses.

Differences by subgroup or to previous waves included in this report are statistically significant at the 95% confidence interval, unless stated otherwise.

Qualitative fieldwork

Sixty follow-up interviews were conducted with survey participants who consented to be contacted for further research between January and March 2026. Twenty interviews were conducted with each customer group.

The interviews lasted up to 60 minutes and explored the topics covered in the surveys in more depth. There was a particular focus on why some customers had found their tax affairs more complex or more straightforward over the past 12 months. The interviews were conducted over the phone and 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.

Question 4

4. Agents

Accepted Answer

4.1 Interactions with HMRC

Agents typically used a combination of digital and telephone channels. They select the most appropriate route depending on the nature and urgency of the task.
Telephone helplines were frequently used when digital channels did not provide the required information or functionality.

Channels used to interact with HMRC

Nearly all Agents (98%) had interacted with HMRC in the 12 months before participating in the survey. As presented in Table 4.1, the most used channel was HMRC webpages on GOV.UK (93%). Around 7 in 10 used commercial software (71%) to interact with HMRC, while fewer used the Agent Dedicated Line (ADL) (68%), post (67%) and client Business Tax Accounts (63%). Over 1 in 2 Agents used other HMRC telephone helplines (57%) and email (53%), whilst 37% used the HMRC digital assistant. The least frequently used channel was HMRC’s app, accessed by only 13% of Agents during the same period.

Table 4.1 Channels Agents used to contact HMRC in the last 12 months

Channels used to contact HMRC	Proportion using channel (%)
HMRC webpages on GOV.UK	93%
Commercial software	71%
Agent Dedicated Line (ADL)	68%
Post	67%
Client Business Tax Account	63%
Any other HMRC telephone helpline	57%
Email	53%
HMRC digital assistant	37%
HMRC app	13%

C3. Which of the following ways have you interacted with HMRC over the last 12 months? Base: All (1,860)

Agents typically used a mix of telephone and online channels to interact with HMRC, with most (79%) combining the ADL with online services. Just over 1 in 10 (13%) relied solely on online services, while less than one percent reported using only telephone helplines for communication with HMRC.

Channel choice was closely linked to the nature of the task being conducted. Online channels were used more for information-seeking and routine activities. For example, 41% used online channels for clarifying tax rules or policies (compared to 24% via telephone) and 24% for viewing, completing or submitting tax returns (compared to 11% via telephone). In contrast, Agents were more likely to use telephone contact for issues perceived as more complex or requiring swift resolution. This included reporting errors or corrections (36%, compared to 14% online) and dealing with tax repayments or refunds (31%, compared to 16% online).

The most common reason for choosing to interact with HMRC by telephone was personal preference (34%). This was followed by issues experienced with online channels (22%) and the belief that telephone helplines would be quicker (20%). Slightly fewer (18%) had attempted to resolve their issue online but were unable to as the service or information needed was unavailable online.

Experience of communication channels

Agents that used HMRC webpages, the ADL or the HMRC digital assistant rated their experience of these channels. HMRC webpages were viewed most positively, with over 1 in 2 reporting a positive experience (55%). Around 1 in 4 reported a positive experience of the Agent Dedicated Line (27%). Meanwhile, 1 in 5 reported a positive experience of the digital assistants (20%).

HMRC webpages

Over 1 in 2 Agents (55%) reported a good experience using HMRC webpages on GOV.UK, while 1 in 3 (33%) described their experience as neutral. Around 1 in 8 (12%) reported a poor experience.

During qualitative interviews, Agents that expressed positive experiences of using HMRC webpages explained that they found them to be clear and easy to navigate. This helped them to resolve straightforward issues or queries independently. They also highlighted the value of examples, which aided interpretation and application.

“I think the guidance on the whole is quite clear. I mean, a lot of the self-assessment information is pretty clear and they give examples… it’s good to have the examples that they give.”

However, Agents reported that HMRC webpages became less accessible and harder to navigate when searching for answers to more specific or complex questions. In these cases, finding relevant information was more challenging, prompting Agents to turn to other channels to resolve their queries.

“I don’t always have the time to read 2 hours’ worth of guidance in order to just find the little bit that I’m looking for.”

Agent Dedicated Line

Over 1 in 4 Agents (27%) that used the ADL rated their experience as good and a similar proportion (28%) reported a neutral experience. Over 2 in 5 (44%) reported a poor experience, which marks a significant decrease from 52% in 2024.

During qualitative interviews, there was a strong sentiment among Agents that the ADL was the fastest and most effective channel for resolving more complex issues. These included correcting errors or negotiating late payments on behalf of clients. However, Agents consistently highlighted shortcomings of the service. Agents mentioned long waiting times and a perceived lack of expertise among helpline advisers. Inconsistency in the knowledge and professionalism of advisers was also highlighted. Agents reported being signposted back to online guidance they had already consulted, having turned to the helpline after being unable to resolve the issue online.

“You will get the odd person who’s very good and will do actions to help… but a lot of people aren’t trained properly and don’t have the knowledge.”

“You can wait an hour for them to answer, then you listen to recorded messages telling you there is plenty of help online. I’m an agent, I know that… it is so insulting to be told that and instead try and direct you to a chatbot.”

Despite some negative experiences with the ADL, there was a consensus that it remained a reliable route to resolution, even if this involved long waits and speaking to multiple advisers. This is illustrated by the experience of an Agent who described an error in a client’s Self Assessment return preventing HMRC from recognising a payment. Although the helpline adviser was unable to resolve the issue at the first point of contact, escalation led to the problem being identified and resolved within a few days.

“It was actually really good… [the adviser] said, ‘I’ve seen the payment, I can see why, I can see what’s happened, I’ll get this resolved as soon as I can’, and then she did within two days.”

HMRC digital assistant

One in 5 Agents (20%) rated their experience of using the HMRC digital assistant as good. Just over 1 in 4 (27%) provided a neutral response, while 1 in 2 Agents (51%) had a poor experience.

During qualitative interviews, Agents who used the HMRC digital assistant generally described their experience as negative. There were consistent reports of encountering repeated barriers when trying to obtain the information they needed, directing them to webpages they had already tried without success. As a result, Agents felt the service was ineffective in resolving their queries, and most said they would be unlikely to use it again for future issues.

“It’s just nonsense. You might as well have picked the phone up and waited in a queue.”

Online submission of information

Almost all Agents (95%) had submitted information online in the 12 months prior to the survey. This tended to be via commercial software (87%) or through their client’s Business Tax Account (46%). Around 1 in 3 (35%) made submissions through other HMRC online services, while less than 1 in 10 (7%) used the HMRC app to submit information.

Seven in 10 Agents (70%) felt that HMRC made it easy to submit information online, while 1 in 5 (19%) felt that it was neither easy nor difficult and 1 in 10 (11%) felt it was difficult.

4.2 Customer experience

Agents’ overall experience of HMRC was mixed, with similar proportions reporting positive and negative experiences.
Agents’ experience was strongly influenced by how easy it was to find relevant information and by their confidence in HMRC. Both factors shaped how straightforward it was to manage clients’ tax affairs.
Customer experience tended to deteriorate where queries required multiple follow-ups, with delays, unclear next steps and inconsistent support contributing to frustration among Agents.

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). Agents’ views on their overall experience were mixed. Around 1 in 3 (35%) rated their overall experience as good (categorised as a rating of 4 or 5), 32% rated their experience as poor (categorised as a rating of 1 or 2) and 34% reported a neutral response (a rating of 3 on a five-point scale).

Agents were more likely to report a good overall experience of HMRC over the past 12 months if they:

Had interacted with HMRC through online channels exclusively (77%)
Had confidence in the way HMRC were doing their job (72%)
Found the quality of HMRC information provided good (57%)
Worked as sole traders (53%)
Found it easy to deal with their clients’ tax affairs (50%)
Perceived HMRC to have treated their clients fairly (49%)

Elements of customer experience

As well as overall experience, the study explored various other elements of customer experience when dealing with HMRC. These are covered below.

Clarity on when everything was completed

Over 1 in 2 Agents (56%) agreed that HMRC made it clear when everything was completed, while 20% gave a neutral response and 22% disagreed.

Clarity on steps needed

Just over 1 in 2 Agents (52%) agreed that HMRC made it clear what steps they needed to take. One in 4 (26%) gave a neutral response and 1 in 5 (22%) disagreed. During qualitative interviews, Agents associated clarity with advisers giving clear and detailed explanations of what actions were needed and when. However, protracted waits for responses from HMRC undermined this clarity, leaving Agents unsure how or when to proceed.

“One [Construction Industry Scheme] case started in June and we’ve just had a letter in January saying there’s been a technical issue and we have to submit again. My client has been waiting for a £20,000 refund and it all has to start again”

“So, we just emailed them saying, look, just tell us which one it is…They emailed back maybe about two or three months later…Saying we’ve attached a help sheet…and it was just no help.”

Resolution of queries or issues

Just under 2 in 5 Agents (37%) rated HMRC as good at resolving any issues or queries. Three in 10 (30%) gave a neutral response and 33% rated this aspect of dealing with HMRC as poor.

During qualitative interviews, Agents expressed frustration with the time taken to resolve ‘non‑routine’ queries or issues. While they accepted that specific and complex matters took time to resolve, they felt that timeframes often extended beyond what they considered reasonable. Delays related to postal correspondence requested by HMRC were also highlighted as particularly problematic, as they disrupted progress in resolving queries or issues.

“If you’re not dealing directly with a named individual within HMRC, but to [the] self‑assessment section or PAYE section… the response times in those letters was totally unacceptable.”

Acceptability of the time taken to reach end-results

One in 4 Agents (24%) felt that the time taken by HMRC to reach an end-result was acceptable. Just over 1 in 2 (53%) reported that the time taken was unacceptable and 1 in 5 (22%) gave a neutral response.

Relevance of information and services

Over 3 in 5 Agents (64%) agreed that HMRC’s information and services were relevant to their clients’ business. Meanwhile, 25% were neutral and 9% disagreed.

During qualitative interviews, there was a consensus that HMRC information and services worked well for simple cases or straightforward queries but were less effective for more complex situations. In these cases, guidance was said to be too vague, overly lengthy or insufficiently grounded in real‑world scenarios. As a result, clients were unable to resolve their queries using guidance alone, prompting the need for additional support.

“Looking at the website… my questions weren’t really being answered. They were wordy and there was too much ambiguity… it was confusing.”

Ease of finding relevant information

Just under 1 in 2 Agents (48%) reported that it was easy to find relevant information from HMRC for their clients’ tax affairs. One in 3 (34%) held a neutral view and 18% said it was difficult.

Qualitative interviews identified that Agents’ primary criticism of online guidance was that it can be difficult to navigate, especially when looking for a complex or specific issue to address.

“I just got lost, it’s overwhelming… My search words are not specific to the results I’m looking for.”

Quality of information and guidance

One in 2 Agents (50%) rated the quality of information and guidance they had looked for or received as good. Meanwhile, 17% rated it as poor and 32% gave a neutral response.

During qualitative interviews, Agents who were positive about the quality of HMRC’s information and guidance described it as comprehensive and easy to understand, particularly for straightforward queries about tax rules or processes. However, reports indicated that the quality of guidance dropped when dealing with more specific or complex issues.

“If you want guidance, you can always go on to the HMRC website to get any guidance that you need.”

Fairness

Over 3 in 5 Agents (63%) agreed that HMRC treats their clients fairly. Of those who did not agree, 22% were neutral and 14% disagreed.

Qualitative interviews demonstrated mixed feedback on whether HMRC treated their clients fairly, with the Agents who disagreed believing that HMRC often behave unfairly when errors, disputes or repayments are involved. There was a recurring concern about clients being pursued for payment while HMRC was holding overpayments. In such cases, HMRC were said to have enforced rigid deadlines and been inflexible despite playing a part themselves in earlier delays to payments.

“If you owe them money, they’re quick enough to hound you, but when they owe you money it’s not as fast coming back and you have to fight your way through to get it.”

HMRC are good at getting tax transactions right

Over 1 in 2 Agents (54%) rated HMRC as good at getting tax transactions right, while 28% were neutral and 18% rated HMRC as poor.

4.3 Experience of tax administration

While most Agents reported that managing their clients’ tax affairs was straightforward overall, a substantial proportion continue to encounter difficulties across different tax types.
Agents’ experience of managing tax affairs was strongly shaped by two factors. The first being how easy it was to find relevant information and the second being their confidence in the way HMRC are doing their job.
Perceptions of tax administration becoming more difficult were often linked to changes in tax rules and processes. Challenges encountered across the wider HMRC customer journey also played a part, particularly when issues required repeated follow‑up.

Managing tax affairs and obligations

Three in 5 Agents (62%) said that dealing with their clients’ tax affairs over the 12 months prior to the survey had been easy. One in 4 (26%) were neutral, reporting that it had been neither easy nor difficult, and 12% found it difficult.

Analysis was produced to explore the factors shaping how easy or difficult Agents found managing their clients’ tax affairs or obligations over the past 12 months. It also aimed to understand how these factors interact with one another. The analysis highlighted two key drivers:

Ease of finding relevant information
Confidence in the way HMRC are doing their job

Three additional factors were identified as having an indirect influence on how easy or difficult Agents found managing their clients’ tax affairs or obligations. While these did not influence overall experience directly, they played a significant role in shaping the factors that did. These indirect influences were:

The relevance of HMRC information and guidance
The quality of information and guidance
How good HMRC were at getting tax transactions right

The factors shaping how easy or difficult Agents found managing their clients’ tax affairs or obligations were interrelated. The relevance of HMRC information and guidance was directly influenced by perceived quality of information and guidance and the confidence in the way HMRC are doing their job. Additionally, views on how good HMRC were at getting tax transactions right were directly influenced by confidence in the way HMRC are doing their job. Other factors with a direct influence were the relevance of HMRC information and guidance, and the quality of information and guidance. While not a key driver in the network, views on the quality of information and guidance had a direct influence on all other factors.

Difficulties experienced and complexity

Although most Agents reported finding it easy to manage their clients’ tax affairs, this did not mean challenges were absent. Over 2 in 5 Agents (44%) encountered difficulties with at least one area of tax they handled for clients in the 12 months leading up to the survey. PAYE was the most frequently cited area where difficulties were experienced (41%), followed by Self-Assessment (33%) and VAT (30%). Fewer Agents reported issues with Corporation Tax (23%) and Customs and Excise (21%).

Over 3 in 5 Agents (64%) reported that their clients’ tax affairs and obligations had remained the same over the past year compared to the preceding 12 months. Of the remainder, 27% felt they had become more complex and 6% said they had become more straightforward.

Agents most commonly attributed improvements to changes in their clients’ business operations (15%), the use of digital software (13%), changes within their own business (13%) and changes to administrative processes (13%). Digital services introduced by HMRC were also a key factor (12%).

During qualitative interviews, improvements in simplicity were frequently linked to increased use of digital systems and third‑party accounting software. Agents also highlighted the growing use of AI, particularly for automating tax processing and supporting searches for information and guidance, as having a positive impact on ease of managing clients’ tax affairs. In addition, there were instances where Agents felt that Making Tax Digital (MTD) was contributing to more streamlined processing.

“With MTD [Making Tax Digital] and everything else, submissions are just a click of a button. I have done three VAT returns this morning. You just go into the return on your accounting software and after you have reviewed and checked it, you are pressing a button, and that is a lot easier than it used to be.”

“[Talking about AI] If you phrase your questions right it can be much quicker to find answers than if you’re trying to wade through pages and pages of stuff.”

On the other hand, the top factor Agents attributed to their clients’ tax affairs becoming more complex were changes to tax rules or regulations (58%). This was followed by changes to the processes required for administering their clients’ tax affairs (19%). Other factors included changes to the way their clients’ business operates (14%), digital services introduced by HMRC (14%) and changes to their own client base (9%).

During qualitative interviews, Agents linked increasing complexity to frequent changes in tax rules, which were seen to add significant administrative burden. Agents highlighted the Construction Industry Scheme (CIS) and Research & Development (R&D) tax credits as particularly challenging. Legislative changes, such as electric car tax rules and partnership taxation, were also cited as making clients’ tax affairs more complex to manage.

“You could say it was our job to make sure that we knew all the rules and regulations [surrounding R&D tax credits], but actually, I don’t think it was publicised enough that the rules were changing around that, so a lot of people, not just me, got caught out on it.”

“R&D changed about 18 months ago, the way they changed it, they promoted it as this was a new thing and it was a good thing, but in practice it isn’t… I’ve got an R&D claim going on at the moment. It’s been going on about over a year.”

Agents sometimes pointed to MTD as a driver of complexity, particularly the expansion of MTD to cover sole traders and landlords. This was expected to result in more confusion around tax obligations among smaller businesses, and a greater number of queries being passed to Agents acting on their behalf, thereby increasing administrative burden.

“The introduction of things like Making Tax Digital puts an additional burden on small businesses, who up until now have only had to do a tax return once a year.”

Qualitative interviews showed that Agents’ perceptions of complexity were shaped by the wider HMRC customer journey. Interactions triggered by perceived errors, particularly repeat issues, created a challenging starting point. Difficulties were made worse by poor early contact experiences, including trouble finding relevant information, long helpline wait times and guidance that did not reflect client circumstances. Complexity escalated when issues were not resolved early and required repeated follow‑up.

Errors in tax dealings

One in 2 Agents (50%) reported encountering errors with their clients’ tax dealings in the previous 12 months. Among those that experienced errors, 34% believed these were caused by HMRC. One in 10 (11%) believed they were caused by both the business and HMRC. A small minority attributed them to their clients or said it was their own error (3% and 2% respectively).

Where Agents had encountered errors, views on HMRC’s ability to resolve errors were mixed. Just over 2 in 5 (43%) rated HMRC as poor at error resolutions, while 26% rated HMRC as good and around 3 in 10 (28%) gave a neutral response.

During qualitative interviews Agents indicated that they were broadly positive about how simple errors such as misallocated payments were addressed, particularly when supported by experienced and knowledgeable advisers. However, others reported having to repeatedly contact HMRC and escalate issues to reach advisers with sufficient experience and knowledge.

“They found the payment, and then within a couple of days, they’d reallocated the payment to the right department.”

“Get professionals on the helpline. People who actually deal with the matter of tax. I’d rather wait a week and have an appointment to speak to professionals than trying every day to call.”

4.4 Perceptions of HMRC

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

Most held positive perceptions in terms of professionalism and trust, and close to half agreed HMRC ensures the correct tax is collected. However, Agents’ confidence in the way HMRC is doing its job and views on the effectiveness of HMRC systems were much more varied.

Professionalism: Around 3 in 5 (58%) agreed that HMRC are professional. Meanwhile, 22% were neutral and 20% disagreed.
Trust: Around 3 in 5 (57%) agreed that HMRC is an organisation they trust. One in 5 (20%) were neutral and 22% disagreed.
HMRC ensures all customers pay or receive the correct tax: Just under 1 in 2 (47%) agreed that HMRC ensures customers pay or receive the correct amount of tax. Meanwhile, 27% were neutral and 24% disagreed.
Confidence in HMRC: Just over 1 in 3 (37%) said they were confident in the way HMRC is doing its job. Around 3 in 10 were neutral or not confident (31% and 32% respectively).
HMRC systems prevent mistakes: Just over 1 in 3 (36%) agreed that HMRC has systems that help prevent customers from making mistakes. Around 3 in 10 were neutral (31%) or disagreed (31%).

Question 5

5. Small Businesses

Accepted Answer

5.1 Interactions with HMRC

Small Businesses typically engaged with HMRC through digital channels. Online services formed the primary route for routine tasks such as viewing information and submitting returns.
Telephone helplines were used less frequently. They tended to be reserved for issues that were harder to resolve online, including queries requiring clarification, corrections or follow‑up.
While digital services met most needs, telephone contact was often driven by personal preference. It also occurred in situations where customers were unable to find the information or functionality required online.

Channels used to interact with HMRC

Four in 5 Small Businesses (80%) contacted HMRC in the 12 months prior to the survey, with 3 in 4 (75%) reporting this was through HMRC’s online services. As seen in Table 5.1, the channel most used by Small Businesses were HMRC’s webpages on GOV.UK (65%). This was followed by Business Tax Accounts (50%), telephone helplines (28%), and commercial software (23%). Under 1 in 6 Small Businesses reported using other channels to interact with HMRC, including postal letters, the HMRC app, emails, and HMRC’s digital assistant service.

Table 5.1 Channels used by Small Businesses to interact with HMRC in 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	28%
Commercial software provider	23%
Post	14%
HMRC app	13%
Sent an email to HMRC	13%
HMRC digital assistant	10%

C3. Which of the following ways have you interacted with HMRC over the last 12 months? Base: All Small Businesses (2,200).

At an overall level, interaction with HMRC among Small Businesses was digital, with 2 in 5 (42%) using online services only over the previous 12 months. One in 4 (25%) reported using a mix of telephone helplines and online channels, while a very small proportion (2%) said they used telephone helplines exclusively.

Personal preference was the most common reason for contacting HMRC by telephone (36%). This was followed by customers who had first tried to resolve their issue online but were unable to do so (19%). Around 1 in 10 used telephone helplines because they were felt to be more convenient or easier to use (12%), or because they expected to get a response quicker than other communication channels (11%). Just under 1 in 10 reported that they used telephone helplines because the service or information they sought was unavailable online (8%) or because they needed to chase an existing action (8%).

Across both online and telephone channels, the most common reason for contacting HMRC was to query tax payments or liabilities (35% online, 32% by phone). This was followed by requests to clarify tax rules or policies (25% for both channels). Online channels were more often used to view, submit, or complete tax returns (34% compared to 8% via telephone). Where issues were seen as more complex or challenging, telephone helplines tended to be used. Around 1 in 7 Small Businesses reported they used telephone helplines to address a tax error or correction (15% compared to 4% online). 1 in 10 disclosed they enquired about the status of tax repayments or refunds by telephone (11% compared to 5% online).

Experience of communication channels

Small Businesses that used HMRC webpages, the Business Tax Account, telephone helplines, HMRC digital assistant services or the HMRC app over the previous 12 months were asked to rate their experience of using each channel. Most digital channels were viewed favourably, with at least 7 in 10 reporting a positive experience of HMRC webpages (70%), the HMRC app (72%), and the Business Tax Account (79%). Telephone helplines and the digital assistant service were viewed in a less positive light, with fewer than 1 in 2 users giving a positive rating (43% and 45% respectively).

Business Tax Account

Four in 5 Small Businesses (79%) rated their experience of using their Business Tax Account as good. A small minority (5%) rated their experience as poor and 13% gave a neutral response.

Qualitative interviews highlighted a strong positive sentiment towards the Business Tax Account, especially when using it for routine administrative tasks such as viewing taxes owed and making payments. Being able to view their payment history and taxes owed helped them understand their tax affairs, and the service made routine payments easier and more efficient. The Business Tax Account worked best for Small Businesses when it was used in conjunction with a third-party software or with accountant support.

“I find the tax portal has been made very simple. You log in, see your account and make your payments It’s very straightforward and has transformed things.”

Points of frustration with this platform mainly came from the need of multiple logins or access codes for different taxes. The introduction of the GOV.UK One Login sometimes caused friction among Small Businesses as they believed the switch to be time-consuming.

HMRC webpages

Seven in 10 Small Businesses (70%) rated their experience of using HMRC webpages on GOV.UK as good. One in 5 (21%) gave a neutral response, and under 1 in 10 (8%) reported a poor experience. Small Businesses were more likely to report a good experience using HMRC webpages compared to 2024 (62%) and were less likely to report having a poor experience compared to 2024 (13%).

Customers who took part in the qualitative interviews generally viewed HMRC’s GOV.UK webpages as a useful first point of reference, particularly for answering common or routine questions such as VAT rates or payroll rules. Businesses typically found the information clear and concise. However, there were recurring issues with navigation, outdated page layouts compared to other webpages, and information that felt contradictory or ambiguous. For example, one customer sought information on pensions and later called HMRC for more detail, only to be informed by the adviser to ignore the website as it was incorrect.

“The [HMRC] website is awful. It’s really hard to find any information … it sends you round in loops, trawling through pages and pages of guidance.”

“There are some parts of [the] HMRC [website] which look older [in] style. They should make it all look the same way, with the same colour scheme and everything else.”

HMRC digital assistant

Ratings of HMRC digital assistant experiences were more mixed, with 45% rating their experience as good and 32% rating their experience as poor. One in 5 (21%) businesses gave a neutral rating.

During qualitative interviews, Small Businesses commonly reported that they rarely used the HMRC digital assistant or chatbot. Where mentioned, customers said they actively avoided them, citing negative experiences with similar services on other websites, which appeared to shape expectations and reduce trust in their usefulness.

“When I use [the digital assistant], I find you don’t frame the question the right way, and it takes me around in a circle, so I have to speak to a human anyway.”

HMRC telephone helplines

Reported experience of telephone helplines also varied, with 43% of Small Businesses giving a good rating and 30% giving a poor rating. These findings mirrored those in 2024, when 47% of Small Businesses rated their experience as good, 32% rated their experience as poor. There was a significant increase in those who reported a neutral experience, 1 in 4 (27%) in 2025 compared with 1 in 5 (20%) in 2024.

In qualitative interviews, Small Businesses tended to report very positive experiences using HMRC telephone helplines once they were able to speak to an adviser. Customers emphasised that HMRC helpline staff were helpful, friendly and clear; Small Businesses reported that many advisers were able to help resolve issues effectively during the call. However, frustration arose when the discussion focused on accessing telephone helplines; frequent reports of long wait times, sometimes lasting hours or being passed between multiple departments, was a primary complaint of this communication channel. In one such case, a Small Business said they received a named contact and access to a dedicated helpline for an issue they had. They found this improved the efficiency and overall quality of their interaction with the adviser.

“No issues at all phone HMRC…though for self assessment you can be on the phone for a long time, but 30 minutes is worth waiting.”

“The most extensive time was for 3 days on 12 different phone calls, going from one department to another. We didn’t get any results from any of it.”

Use of agents

Most Small Businesses used a tax agent or external accountant to deal with tax affairs and obligations in the past 12 months (73%). Agents were most commonly used to help with Corporation Tax (17%), Income Tax through Self-Assessment (15%), VAT (14%) as well as PAYE and National Insurance (12%).

The majority of Small Businesses were satisfied with the support and advice they received from their agent in the past year (92%). Similarly, 7 in 10 businesses (71%) reported that HMRC made it easy for someone else to act on their behalf. A small proportion either believed HMRC made it difficult for someone else to act on their behalf (5%) or felt neutral about whether they did or not (8%).

Qualitative interviews showed that Small Businesses typically relied on an accountant or tax agent. This was commonly their main point of contact for handling tax, interpreting rules, and understanding next steps. Certain businesses reported that agents were especially relied upon when queries were niche or technical, such as understanding Stamp Duty Land Tax, or to sense check information that contained technical jargon.

“My only dealings with HMRC are through my accountant. [They do] my books at the end of the year. [They tell] me what tax I’ve got to pay. It works quite well for me.”

Online submission of information

Three in 5 Small Businesses reported they had submitted information to HMRC online in the past 12 months (62%). Of these, nearly 1 in 2 (46%) had submitted information through their Business Tax Account, while 3 in 10 reported using commercial software to do so (30%). Other online platforms were used less frequently; 8% reported submitting information through email, 8% through the HMRC app, and 7% through other HMRC services.

Over 3 in 4 Small Businesses who submitted information to HMRC online reported that it was easy to do so (78%). One in 10 businesses held a neutral view (13%) and 7% reported difficulty. The proportion of Small Businesses that felt HMRC made it easy to submit information was statistically higher compared to 2024, up from 73%. Similarly, a significantly smaller proportion described it as difficult, down from 11%.

5.2 Customer experience

Most Small Businesses reported a positive overall experience of HMRC, with strongest perceptions linked to straightforward and routine interactions.
Customer experience was strongly shaped by how easy it was to find and use relevant information, with clear and accessible guidance supporting more positive interactions.
Customer experience tended to weaken when resolving issues required additional contact or clarification, with delays and challenges navigating support channels contributing to less positive outcomes.

Overall experience

Small Businesses rated their overall experience of HMRC over the past year on a five-point scale from very poor to very good. Seven in 10 (70%) rated their overall experience as good (categorised as a rating of 4 or 5) and 1 in 10 businesses (10%) rated their overall experience as poor (categorised as a rating of 1 or 2). One in 5 (19%) businesses reported a neutral response and gave a rating of 3 on the five-point scale.

Small Businesses were more likely to report a good overall experience of HMRC over the past 12 months if they:

Found it easy to find information from HMRC (90%)
Found the quality of information HMRC provided good (89%)
Had interacted with HMRC through online channels exclusively (80%)
Found it easy to deal with their tax affairs or obligations (79%)

Elements of customer experience

Alongside overall experience, the survey considered various aspects of customer interaction with HMRC in relation to business tax affairs, which are set out below.

Clarity on when everything was completed

Seven in 10 Small Businesses (72%) agreed that HMRC made it clear when everything was completed. Around 1 in 10 disagreed (11%), and a similar proportion held a neutral view (13%).

Clarity on steps needed

Seven in 10 Small Businesses (71%) agreed that HMRC made next steps clear for them. Just over 1 in 7 (16%) gave a neutral response and 1 in 10 (10%) disagreed. While the proportion of those that disagreed fell compared to 2024 (11%), a significantly larger proportion of Small Businesses agreed (66%).

Resolution of queries or issues

Over 3 in 5 Small Businesses (65%) reported that HMRC was good at resolving their queries or issues in the past 12 months. Around 1 in 5 (18%) held a neutral view and 1 in 7 (14%) believed HMRC was poor at issue or query resolution. A significantly higher number of Small Businesses agreed compared with 2024 (61%).

Qualitative findings suggest that Small Businesses found HMRC to provide good resolution when they were able to reach the right adviser or when they had a straightforward issue.

“Some staff member was given a 40% tax rate in error. It was easy to communicate with [HMRC] and they quickly accepted the error. Everyone was happy within a month.”

Acceptability of the time taken to reach end-results

Over 3 in 5 Small Businesses (63%) felt that the time taken for HMRC to reach an end-result was acceptable. In contrast, around 1 in 5 found the time taken to be unacceptable (18%), and the same proportion held a neutral response (18%).

Relevance of information and services

Most Small Businesses believed that HMRC provided information and services relevant to their business; seven in 10 (70%) agreed, while only a small minority (7%) disagreed. One in 5 (19%) were neutral on the matter.

During qualitative interviews, Small Businesses readily said that HMRC guidance and tools were relevant to what they were looking for but this was often restricted to routine questions or clarifications. For example the holiday pay calculator was seen as directly relevant for a handful of Small Businesses. Moreover, information on VAT rate clarification was cited as helpful and understandable.

“I was just looking up generally for someone who may have one of these issues coming up. It explained what the implications of A, B or C could be. It was understood, and I was able to relay it to that person, so no problem.”

Small Businesses that said they did not find the information or services provided as relevant for their businesses highlighted that certain HMRC guidance felt more aimed towards larger businesses. Foreign income tax or trading guidance was described as hard to use because it did not feel written with small traders in mind.

Ease of finding relevant information

Around 3 in 5 (59%) Small Businesses said they found it easy to locate the HMRC information relevant to their business’s tax affairs. Meanwhile, perceptions that information was difficult to find declined, with 12% reporting difficulty compared with 16% in 2024. The proportion of Small Businesses expressing a neutral view also increased, rising from 22% in 2024 to 26% in 2025.

Findings from the qualitative interviews suggested that ease of finding relevant information was closely linked to the complexity of the query. More specific or specialist topics, such as commodity codes or Stamp Duty, were typically described as harder to locate and required customers to spend additional time navigating guidance. In one case, a Small Business also raised accessibility considerations from a neurodiverse perspective, noting that HMRC webpages can contain large volumes of information presented on a single page. This was described as overwhelming and, could led the customer to rely on telephone helplines instead to obtain the information they needed.

“The difficulty is all of the gov.uk and HMRC websites look exactly the same, there is no way of me with my neurodiverse brain to connect different things to what I am reading. It just feels like a mass of information … alongside the emotional panic of trying to build this business up”

Quality of information and guidance

The proportion of Small Businesses that reported the quality of HMRC information and guidance as good has increased in 2025. Two in 3 (67%) felt information and guidance was of good quality, an increase from 63% in 2024. One in 5 (21%) remained neutral, and 1 in 10 (9%) believed HMRC’s information and guidance was of poor quality.

During qualitative interviews, Small Businesses that reported positive experiences with HMRC’s information and guidance emphasised the clarity of the language used and the breadth of information available. In contrast, customers with more negative experiences believed the language used was overly technical. Again, this was typically cited when Small Businesses were seeking more niche or business-specific guidance.

“I think it’s really helpful. There’s a lot of information there, so you do have to try and dial down into what you actually need.”

“In 95% of cases, it probably would have [answered my question], but because we’re so specialist in what we manufacture, it takes an awful lot of digging to find the right answer.”

Fairness

Small Businesses widely believed that HMRC treated their business fairly. Around 4 in 5 customers (78%) agreed that HMRC was fair on their businesses. Only 6% disagreed and 13% held a neutral view.

“[I find it helpful that] When you incur points [on HMRC’s] penalty system, you actually get a letter come through to say you have incurred the points. So you get a reminder that you haven’t done this, rather than [a letter saying] you’ve incurred a late charge.”

HMRC are good at getting tax transactions right

Three in 4 customers (74%) reported HMRC was good at getting tax transactions right, while only 6% viewed HMRC as poor in this regard. Around 1 in 8 Small Businesses were neutral (13%).

5.3 Experience of tax administration

Most Small Businesses reported that managing their tax affairs was straightforward, with only a small proportion experiencing difficulties across the main tax types.
Experience of managing tax affairs was closely linked to how easy it was to find relevant information. Clearer guidance helped reduce challenges and supported smoother interactions.
Experiences of tax administration were less consistent where businesses encountered changes to tax rules. In addition, where businesses experienced shifts in business activity, or issues that required additional clarification or follow‑up.

Understanding tax obligations

Most Small Businesses reported they had a good understanding of their tax obligations, with a small subset reporting this was not the case. Customers were asked to assess their understanding of the taxes paid by their business over the past 12 months:

VAT: 87% rated their understanding as good, 9% gave a neutral response and 3% rated their understanding as poor.
Corporation Tax: 79% rated their understanding as good, 15% gave a neutral response and 5% rated their understanding as poor.
PAYE: 76% rated their understanding as good, 16% gave a neutral response and 7% rated their understanding as poor.
Self-Assessment: 75% rated their understanding as good, 18% gave a neutral response and 6% rated their understanding as poor.
Customs and Excise taxes: 61% rated their understanding as good, 26% gave a neutral response and 12% rated their understanding as poor.

Managing tax affairs and obligations

Three in 4 Small Businesses (76%) said it was easy for them to manage their tax affairs or obligation in the past 12 months. Of the remainder, 16% felt neutral about the experience and 6% said it was difficult. There was a decrease in the proportion reporting difficulties, down from 8% in 2024.

Analysis explored the factors shaping how easy or difficult Small Businesses found managing their tax affairs over the past 12 months, and how these factors interact. The analysis highlighted 3 key drivers with a strong influence on overall ease of dealing with tax matters:

Ease of finding relevant information
Experience of challenges with their tax affairs
Perception of fair treatment from HMRC

Two of these factors were interrelated, with the ease of finding relevant information directly influencing the experience of challenges with tax affairs. The Bayesian Network analysis identified two other factors that had an indirect relationship with Small Businesses’ overall experience of dealing with tax affairs or obligations. These were: the quality of HMRC information and guidance, and the ease of finding relevant information from HMRC.

The analysis indicates that improvements to the quality and findability of HMRC information and guidance would likely deliver both direct and indirect benefits for Small Businesses’ experience of managing their tax affairs.

Survey and qualitative findings on the factors influencing Small Businesses’ experience of dealing with their tax affairs are presented in the earlier section, Elements of customer experience. The technical report provides further detail on the strength of influence these factors had on overall experience of dealing with tax affairs or obligations.

Difficulties experienced and complexity

More than 4 in 5 Small Businesses (86%) did not experience any difficulties with their taxes over the last 12 months. However, a notable minority (14%) said they had experienced difficulties. These difficulties were reported with a range of taxes, including Customs and Excise taxes (16%), PAYE (10%) and VAT (10%), Self Assessment (9%) and Corporation Tax (7%).

Under 1 in 10 Small Businesses (8%) felt that their tax affairs became more straightforward in the past 12 months, while 1 in 7 (14%) reported they had become more complex. The proportion of Small Businesses that said the complexity of their tax affairs had not changed in the past year has increased in 2025. Around 3 in 4 Small Businesses (74%) felt the complexity of their tax affairs had remained the same, an improvement from 69% in 2024.

The most common reason Small Businesses cited for their tax affairs becoming more straightforward related to how their business operates (31%). For example, during qualitative interviews, customers typically attributed this to changes such as a reduced workload, simplifying income and expenditure into a single account, or having fully repaid amounts owed to HMRC.

“I’ve tidied up my end - just using one bank account for things to go in and out of.”

Having tax affairs managed by a third party was the next most frequently mentioned factor (13%) to why tax affairs have become more straightforward. One in 4 (25%) of Small Businesses attributed improvements over the past 12 months to HMRC. In particular, 1 in 10 felt that clearer guidance on GOV.UK (12%) and the introduction of HMRC digital services (10%) had made their tax affairs less complex, while a smaller proportion pointed to their direct communication with HMRC (3%).

Conversely, the most frequent factors Small Businesses attributed to their tax affairs becoming more complex were changes to tax rules or regulations (39%) and changes to the way they operated their business (32%). Changes to tax processes (13%), digital services introduced by HMRC (10%) and tax-related digital software (4%) were mentioned by a smaller proportion of businesses.

“[HMRC changing the way they accept tax returns] made it more awkward. They had a system in place, changed what they were doing, and wouldn’t accept what you had been doing.”

Qualitative interviews also showed that perceptions of complexity and difficulty were shaped by the wider customer journey Small Businesses had when interacting with HMRC. The initial trigger for interactions played an important role, with unexpected or unfamiliar events and perceived errors on HMRC’s part creating a more challenging starting point.

Early contact experiences could then exacerbate perceptions of complexity and difficulty. Challenges finding information, long helpline wait times and guidance that did not address specific business circumstances made it harder to understand obligations or identify next steps.

Complexity and difficulty escalated when issues were not resolved early on and required multiple follow‑ups. This was frequently driven by unclear or inconsistent guidance, a lack of perceived ownership from HMRC and ineffective handovers between different HMRC advisers.

Errors in tax dealings

One in 10 Small Businesses (11%) reported encountering errors with their tax dealings in the previous 12 months. This comprised of 7% who believed HMRC caused an error, 2% who said their business made the error and a further 2% who believed the error came from both the business and HMRC.

Where Small Businesses had encountered tax errors, they were asked to rate how good HMRC was at error resolution. Views from businesses were mixed, with 2 in 5 (40%) reporting that HMRC was poor at error resolutions and around 1 in 3 (32%) reporting they were good. Around 1 in 4 (24%) gave a neutral response.

Qualitative interviews found that Small Businesses commonly felt errors in tax dealings had reduced over time, attributed largely to greater automation and integration with accounting software. This was seen as making tax transactions more accurate and dependable than in previous years, particularly for routine submissions for as VAT, PAYE and Corporation Tax.

“I think HMRC’s online systems are well thought out and logical…I’m very happy with the process and they [HMRC] come across to me as confident [and] credible.”

Views on how effectively errors were corrected when they did occur were more mixed. Small Businesses reported that incorrect figures or misallocated payments could be resolved promptly once identified, however, outcomes depended on finding the “right” contact within HMRC, which undermined confidence in the consistency of error resolution.

5.4 Perceptions of HMRC

This section examines Small Businesses’ wider perceptions of HMRC as an organisation, drawing on ratings across a range of key areas.

Overall, perceptions of HMRC are relatively positive. However, views on the professionalism of HMRC has declined since 2024.

Professionalism: Three in 4 Small Businesses (74%) agreed that HMRC staff are professional, which has decreased from 80% in 2024. Just 6% disagreed that HMRC staff are professional and 13% gave a neutral response.
Trust: Seven in 10 (70%) Small Businesses agreed that HMRC is an organisation they trust, 12% disagreed with this statement and nearly one in 5 (18%) gave a neutral response.
Confidence in HMRC: Around 3 in 5 (62%) Small Businesses were confident in the way HMRC is doing its job. Around 1 in 8 businesses (13%) reported having no confidence in the way HMRC is doing its job, while 23% of businesses provided a neutral view.
HMRC ensures all customers pay or receive the correct tax: Three in 5 Small Businesses (60%) agreed that HMRC ensure all customers pay or receive the correct amount of tax, while 13% disagreed and 20% gave a neutral response.
HMRC systems prevent mistakes: One in 2 Small Businesses (49%) felt that HMRC had good systems that prevented customers from making mistakes, while 14% disagreed with this and 26% held a neutral view.

Question 6

6. Mid-Sized Businesses

Accepted Answer

6.1 Interactions with HMRC

Mid‑Sized Businesses mainly interacted with HMRC through digital channels but typically combined online services with telephone contact depending on their needs.
Telephone helplines were more likely to be used where queries required discussion or timely resolution.
Digital channels supported routine activity effectively. However, customers were more likely to switch channels when they were unable to find clear guidance or required reassurance from an adviser.

Channels used to interact with HMRC

Nine in 10 Mid-Sized Businesses (88%) reported contacting HMRC in the 12 months before participating in the survey, most commonly through HMRC’s online services (86%). As presented in Table 6.1, the most used channels to interact with HMRC were webpages on GOV.UK (80%), followed by Business Tax Accounts (66%), telephone helplines (51%) and commercial software (33%). Other channels were used by less than a third of Mid-Sized Businesses, including 15% that used HMRC’s digital assistant service and 9% that used the HMRC app.

Table 6.1 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	80%
Business tax account	66%
HMRC telephone helplines	51%
Commercial software provider	33%
Sent an email to HMRC	27%
Post	23%
HMRC digital assistant	15%
HMRC app	9%

C3. Which of the following ways have you interacted with HMRC over the last 12 months? Base: All Mid-Sized Businesses (1,599).

In terms of broad communication methods, around 1 in 2 (49%) used a combination of both online and telephone channels to contact HMRC in the previous 12 months. Around 1 in 4 (26%) relied exclusively on online channels, while a very small minority (2%) reported using telephone helplines alone.

The most common reason for choosing to interact with HMRC by telephone was personal preference (34%), often reflecting a desire to discuss an issue or seek reassurance directly from an adviser. Other common reasons included expectations that telephone helplines would be quicker (16%) and unsuccessful attempts to resolve the issue online (16%). Around 1 in 10 found that calling was easier or more convenient (12%).

Across both online and telephone channels, Mid-Sized Businesses most commonly contacted HMRC to query tax payments or liabilities (36% online and 35% via telephone) or to clarify tax rules (34% online and 21% via telephone). Online channels were also often used for more routine tasks, with just under 1 in 4 going online to view, submit or complete a tax return (23%, compared to 6% via telephone). Telephone helplines were used more when issues were seen as complex or problematic. Around 1 in 5 businesses used them to report an error or correction (19% vs 7% online). One in 10 used them to query tax repayments or refunds (11% vs 4% online).

Experience of communication channels

Mid-Sized Businesses that used HMRC webpages, the Business Tax Account, telephone helplines or the HMRC digital assistant rated their experience of these channels. Overall, digital channels were viewed more positively, with strong satisfaction reported for the Business Tax Account (75%) and HMRC webpages (69%), and a slim majority also rating the digital assistant positively (56%). In contrast, experiences of the telephone helpline were noticeably less favourable, with 2 in 5 reporting a positive experience (40%).

Business Tax Account

Three in 4 Mid-Sized Businesses (75%) rated their experience of using their Business Tax Account as good. Just 5% rated it as poor and 18% gave a neutral response.

In the qualitative interviews, Mid-Sized Businesses typically saw the Business Tax Account as a helpful “first port of call” for viewing their liabilities, submitting returns and checking the status of payments. It was described as straightforward and convenient for routine tasks.

There was a desire for more practical tools. Ideas suggested included a button to request more time to make a payment or to request a discussion with HMRC about it. Other suggestions included calculation tools (such as for National Insurance), and a dedicated area for late payments showing what is owed and how interest is accruing.

HMRC webpages

Around 7 in 10 Mid-Sized Businesses (69%) had a good experience using HMRC webpages on GOV.UK and 1 in 4 (25%) reported a neutral experience. Just 6% had a poor experience, a reduction from 14% in 2024.

During the qualitative interviews, Mid-Sized Businesses that rated HMRC’s webpages positively typically described the online resources as easy to navigate, accessible and helpful. The inclusion of examples and illustrations was highlighted as a useful feature of some guidance.

“Nine times out of 10 … [the online guidance] is clear and concise for what I need.”

However, not all experiences were positive. Those with less positive experiences described the information as too vague or too spread out and difficult to navigate. For example, Mid-Sized Businesses mentioned not being able to find sufficient guidance on processing Benefits in Kind for PAYE. They found that information on excise duties on exports was too spread out between different pages. These issues resulted in the customers having to contact HMRC via telephone helplines.

“When you get to page 4 instead of moving on to page 5 and finding the answer, it says what you need to do is read chapter 7 and it takes you back to page one.”

HMRC digital assistant

Over 1 in 2 Mid-Sized Businesses (56%) rated their experience of using the HMRC digital assistant (chatbot or webchat) as good. Around 3 in 10 (28%) had a poor experience, while 16% provided a neutral response.

During the qualitative interviews, Mid-Sized Businesses reported encountering issues obtaining the information they required during interactions with the chatbot. It was seen as too generic and customers reported being redirected to guidance pages they had already tried. The general consensus was the chatbot was unable to answer more nuanced questions.

“If [the chatbot] can’t answer your question, it points you to a page on the website that includes [the key word] rather than answering your specific query. It sends you to a guidance page you have already been on and didn’t understand which is why you were asking the question.”

HMRC telephone helplines

Views of the HMRC telephone helpline were more mixed. Two in 5 Mid-Sized Businesses rated their experience as good (40%), while 31% rated their experience as poor and 28% reported a neutral experience.

During the qualitative interviews, Mid-Sized Businesses highlighted long wait times and repeated transfers between departments when using HMRC telephone helplines. These experiences often led to frustration and meant issues were not resolved as efficiently as customers had hoped. However, despite these frictions, customers were generally able to get their issues resolved and queries answered once they were able to speak with an appropriate adviser.

“I waited for 45 minutes and when I finally got through, I was told I had come to the wrong place, was put on hold then cut off.”

“Every time you phone up, you speak to someone different and you have to explain the situation again.”

“If you get the right person in the right job, you get a really good service from an individual.”

Use of agents

Use of agents or external accountants was widespread among Mid‑Sized Businesses, with over 4 in 5 (86%) relying on this support to help manage their tax affairs over the past 12 months. Corporation Tax was the most common area where Mid-Sized Businesses sought support from agents (31%), followed by PAYE and National Insurance (13%), and VAT (13%).

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 (72%). Just under 1 in 10 (8%) were neutral on the matter, while 4% felt HMRC made it difficult.

Online submission of information

Three in 4 Mid-Sized Businesses had submitted information to HMRC online in the last 12 months (74%). This was most commonly done via their Business Tax Account (57%) and commercial software (51%). Small proportions used other HMRC online services (6%) or the HMRC app (5%).

Over 3 in 4 Mid-Sized Businesses who submitted information to HMRC online said they found it easy to do so (78%). Just 5% said it was difficult and 16% held a neutral view.

6.2 Customer experience

Most Mid‑Sized Businesses reported a positive overall experience of HMRC, although experiences were less consistent where interactions extended beyond routine tasks.
Customer experience was strongly influenced by how easy it was to find relevant information. Clearer and more accessible guidance supported more positive perceptions of HMRC.
Customer experience tended to decline when issues required repeated contact or were not resolved promptly, with delays and fragmented support contributing to less favourable outcomes.

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). Over 3 in 5 (64%) rated their overall experience as good (defined as a rating of 4 or 5), while 11% rated their overall experience as poor (defined as a rating of 1 or 2). The remaining 25% gave a rating of 3 on the 5-point scale, deemed to be a neutral response.

Mid-Sized Businesses were more likely to report a good overall experience of HMRC over the past 12 months if they:

found it easy to find relevant information from HMRC (83%)
found it easy to deal with their tax affairs or obligations (74%)
had interacted with HMRC exclusively online channels (74%)
used a tax agent to manage their tax affairs or obligations (65%)

Elements of customer experience

As well as overall experience, the study also explored various other elements of customer experience when dealing with HMRC. These are covered in turn below.

Clarity on when everything was completed

Around 2 in 3 Mid-Sized Businesses (68%) agreed that HMRC made it clear when everything was completed, while 17% gave a neutral response and 13% disagreed.

Qualitative interviews helped to explain what positive experiences of clarity of completion looked like in practice, with some pointing to clear written confirmation from HMRC.

“[The repayment plan] was all arranged within an hour and letters were sent out confirming everything.”

Clarity on steps needed

Two in 3 Mid-Sized Businesses (67%) agreed that HMRC made it clear what steps they needed to take. One in 5 (20%) gave a neutral response and just 1 in 10 (10%) disagreed.

During qualitative interviews, clarity was often associated with HMRC advisers providing clear and detailed explanations of the actions required and the timescales involved.

“[The HMRC adviser] laid it all out. We knew exactly when all of our payments were due.”

Resolution of queries or issues

Three in 5 Mid-Sized Businesses (60%) rated HMRC as good at resolving any issues or queries. Meanwhile, just over 1 in 5 (22%) gave a neutral response and around 1 in 6 (17%) rated this aspect of dealing with HMRC as poor.

Acceptability of the time taken to reach end-results

One in 2 Mid-Sized Businesses (51%) felt that the time taken by HMRC to reach an end-result was acceptable. Just over 1 in 5 (22%) reported that the time taken was unacceptable and 1 in 4 (25%) gave a neutral response. These findings are similar to 2024.

Relevance of information and services

Around 7 in 10 (71%) of Mid-Sized Businesses agreed that HMRC’s information and services were relevant to their business. Just under 1 in 4 (23%) were neutral and 4% disagreed.

Ease of finding relevant information

Around 3 in 5 Mid-Sized Businesses (59%) reported it was easy to find relevant information needed for their tax affairs from HMRC. Approaching 3 in 10 (28%) held a neutral view and around 1 in 8 (12%) said it was difficult.

Quality of information and guidance

Two in 3 Mid-Sized Businesses (66%) rated the quality of information and guidance they had looked for or received as good. Just 1 in 10 (9%) rated it as poor and the remaining 24% gave a neutral response.

In the qualitative interviews, commonly valued aspects of HMRC information and guidance were clarity, reliability and practical usefulness for completing tasks. Mid-Sized Businesses particularly appreciated guidance that is easy to understand, clearly structured and directly applicable, helping them confirm they are doing things correctly. Step-by-step explanations helped to reduce uncertainty.

In contrast, Mid-Sized Businesses struggled with guidance that was too complex, overly technical or poorly structured. Issues included circular navigation, difficulty finding the right information, lack of specificity for individual scenarios and overly generic content that did not fully answer the question. Technical areas (such as VAT and reverse charge explanations) were particularly problematic, as guidance often lacked clear examples or step-by-step instructions. Poor search functionality and fragmented information across multiple pages further increased frustration, leading some to abandon guidance and seek help via agents or phoning HMRC instead.

Fairness

Agreement HMRC treats their business fairly fell in 2025, reversing the improvement seen between 2023 and 2024. While 3 in 4 Mid‑Sized Businesses (75%) continued to agree HMRC treats them fairly, this represents a decline from 79% in 2024. Of those who did not agree, 17% gave a neutral rating and 5% actively disagreed.

HMRC are good at getting tax transactions right

Perceptions of HMRC’s accuracy in tax transactions have also declined in 2025, again reversing the improvement observed between 2023 and 2024. Two in 3 Mid-Sized Businesses (67%) rated HMRC as good at getting tax transactions right, down from 73% in 2024. Around 1 in 6 (18%) were neutral and 10% rated HMRC as poor.

6.3 Experience of tax administration

Most Mid‑Sized Businesses reported that managing their tax affairs was straightforward overall, although a minority continue to experience difficulties across particular tax types or situations.
Experience of managing tax affairs was strongly shaped by how easy it was to find relevant information. Clearer guidance supported more positive and straightforward interactions.
Experiences of tax administration were less consistent where businesses faced changes to tax rules or operations, or where issues required follow‑up.

Understanding tax obligations

Most Mid-Sized Businesses reported a good 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: 89% reported a good understanding, 9% gave a neutral response and 2% rated their understanding as poor.
PAYE: 88% reported a good understanding, 10% gave a neutral response and 2% rated their understanding as poor.
Corporation Tax: 74% reported a good understanding, 17% gave a neutral response and 6% rated their understanding as poor.
Self Assessment: 71% reported a good understanding, 20% gave a neutral response and 6% rated their understanding as poor.
Customs and Excise taxes: 57% reported a good understanding, 30% gave a neutral response and 11% rated their understanding as poor.

Managing tax affairs and obligations

When asked how easy or difficult they found it to deal with their tax affairs or obligations over the last 12 months, most Mid-Sized Businesses said they found it easy (75%). Just 7% said they found it difficult and the remaining 16% provided a neutral response.

Analysis was conducted to identify the factors that influence experience of how easy or difficult they found dealing with tax affairs or obligations over the previous 12 months. The analysis also helped understanding of how these factors influence one another. This analysis identified 3 factors that had a strong influence:

Ease of finding relevant information
Perceptions of how good HMRC are at getting tax transactions right
Perceptions of fair treatment from HMRC

Two of the 3 factors that had a strong influence on Mid-Sized Businesses’ experience of dealing with their tax affairs were interrelated. Perceptions of how good HMRC are at getting tax transactions right were directly influenced by perceptions of fair treatment from HMRC. The belief that finding relevant information from HMRC was easy had the strongest influence of Mid-Sized Businesses’ overall experience of dealing with their tax affairs or obligations.

An additional factor that was identified as having an indirect influence on the experience of dealing with their tax affairs was relevance of information provided by HMRC. While this did not influence overall experience directly, it played a role in shaping two factors that did. These were: perceptions of how good HMRC are at getting tax transactions right and perceptions of fair treatment from HMRC. More information on the strength of influence these factors had on overall experience of dealing with tax affairs or obligations can be found in the standalone technical report.

Survey and qualitative findings on the factors influencing Mid‑Sized Businesses’ experience of dealing with their tax affairs are presented in the earlier section, Elements of customer experience. The technical report provides further detail on the strength of influence these factors had on overall experience of dealing with tax affairs or obligations.

Difficulties experienced and complexity

One in 5 Mid-Sized Businesses (20%) encountered difficulties with at least one tax area in the 12 months before the survey. This is in the context of generally high levels of understanding and ease of managing tax affairs overall, suggesting that challenges were concentrated in specific areas rather than widespread. PAYE was the most frequently cited area where difficulties were experienced (17%), followed by Customs and Excise taxes (16%) and VAT (13%). Fewer businesses reported issues with Self-Assessment (10%) and Corporation Tax (8%).

Seven in 10 Mid-Sized Businesses (71%) reported the complexity of their tax affairs or obligations was about the same over the past year compared to the preceding 12 months. Around 1 in 6 (17%) felt they had become more complex and 7% said they had become more straightforward.

The top factor Mid-Sized Businesses attributed to their tax affairs becoming more straightforward was changes to the way their business operates (29%). One in 10 said they had become more straightforward due to their tax affairs being dealt with by a third party (10%) and changes to tax rules or regulations (10%). Just under one in ten attributed the increased simplicity to HMRC guidance on GOV.UK (9%) and the use of digital software (8%).

Qualitative findings echoed these results. Where Mid-Sized Businesses felt their tax affairs had become simpler, this was commonly attributed to changes in business circumstances (for example changes to turnover, headcount and client bases) or an increased use of digital solutions. Changes to business circumstances were said to have made tax affairs or obligations simpler by reducing the number of taxes they were liable to pay or improving their ability to make payments. Simplicity was also linked to greater use of digital tools, including third‑party accounting software and HMRC online services, which helped streamline tax administration.

“I think mostly it can be attributed to the fact that we changed our accounting package. The software now sets it all out. It’s really simple. When I file to HMRC, I don’t need to log onto the Government Gateway anymore because all the details are in our [accounting] software package and off it goes, it reports it for me.”

In contrast, the top factors Mid-Sized Businesses attributed to their tax affairs becoming more complex were changes to tax rules or regulations (41%) and changes to the way their business operates (39%). Other factors that increased complexity included changes to the processes required (13%), communication with HMRC (3%), and HMRC guidance on GOV.UK (3%).

The qualitative interviews helped explain how these changes were experienced in practice. Increased complexity was often linked to challenges in specific tax areas, including PAYE discrepancies, VAT‑related confusion and changes to National Insurance requirements. Complexity was also heightened where businesses had expanded their activities, particularly when starting to export goods or operate in overseas territories, which had knock‑on implications for VAT. They highlighted operational issues as a factor, such as difficulties with HMRC online systems and problems with how HMRC handled administrative processes (for example Anti‑Money Laundering registration).

“So, we’ve started exporting to EU countries… it’s being able to get things across the channel and making sure the right paperwork is in place. There’s been a few grey areas. I just want to get the information out of HMRC. It takes a bit of searching.”

“We have customers take on the customs element so at the moment we are not registered for tax in other countries, so we are looking to how we can shift the customs element back onto ourselves… that means registering in different countries and more VAT returns in different countries.”

As with Small Businesses, qualitative interviews with Mid-Sized Business highlighted how perceptions of complexity and difficulty were also shaped by customer journeys when interacting with HMRC. Interactions prompted by unexpected or unfamiliar issues set a more difficult context from the outset. Perceived complexity and difficulty was compounded where initial contact with HMRC failed to provide the desired outcome, due to being unable to find relevant guidance or access appropriate advisers. Where queries or issues were not resolved promptly, repeated follow‑ups caused the sense of complexity and difficulty to intensify.

Errors in tax dealings

One in 5 Mid-Sized Businesses (19%) reported that they had encountered errors with their tax dealings over the last 12 months. This consisted of 12% who felt HMRC made the error, 4% who felt it was an error by both parties and 2% who acknowledged it was their own error.

During the qualitative interviews, Mid‑Sized Businesses reported tax errors arose within their PAYE accounts. Participants highlighted issues were particularly prevalent where businesses managed multiple accounts. Errors were attributed to incorrect calculations or payments being allocated to the wrong account (by both parties), which could be difficult and time‑consuming to resolve.

Of those who had encountered errors, 1 in 3 (32%) rated HMRC as good at resolving them. Of the remainder, 24% were neutral and 44% rated HMRC as poor at resolving errors.

Where Mid‑Sized Businesses had negative experiences of error resolution, this was most often because issues were not resolved efficiently or cleanly. In some cases, errors were reported to reoccur, contributing to a sense that issues were not being fully resolved. Mid-Sized Businesses also raised concerns about the quality and consistency of support received, including experiences with helpline advisers who were perceived to lack sufficient knowledge. Frustration was further compounded where cases were not effectively tracked or carried forward. HMRC systems sometimes incorrectly registered a case as unresolved, or disjointed communication between different advisers meant cases were not consistently carried forward across successive calls.

6.4 Perceptions of HMRC

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

Overall, perceptions of HMRC remain broadly positive, particularly around professionalism and trust, which have remained stable compared to 2024. However, confidence in HMRC, views on the effectiveness of its systems and belief that HMRC ensures the correct tax is paid or received have all declined slightly since 2024.

Professionalism: Just over 3 in 4 (77%) of Mid-Sized Businesses agreed that HMRC are professional. Around 1 in 7 were neutral (14%), while 6% disagreed.
Trust: Two in 3 Mid-Sized Businesses (67%) agreed that HMRC is an organisation they trust. One in 5 (21%) were neutral and 11% disagreed.
Confidence in HMRC Just under 3 in 5 Mid-Sized Businesses (58%) said they were confident in the way HMRC is doing its job, down from 63% in 2024. Just over 1 in 4 (27%) were neutral and 13% were not confident.
HMRC ensures all customers pay or receive the correct tax: Over 1 in 2 Mid-Sized Businesses (56%) agreed that HMRC ensures customers pay or receive the correct amount of tax, down from 62% in 2024. One in 4 (26%) were neutral, up from 22% in 2024, while 13% disagreed.
HMRC systems prevent mistakes: One in 2 Mid-Sized Businesses (49%) agreed that HMRC has systems that help prevent customers from making mistakes. One in 4 (26%) were neutral and 15% disagreed.

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1. Glossary

Table 1.1 Terminology and abbreviations used in this report

2. Executive summary

2.1 Introduction

2.2 Headline insights

2.3 Key findings

Interactions with HMRC

Customer experience

Experience of tax administration

Perceptions of HMRC

3. Introduction

3.1 Background

3.2 Methodology

Detailed information on the methodological approach taken to the research is available in a standalone technical report.

Quantitative fieldwork

Qualitative fieldwork

4. Agents

4.1 Interactions with HMRC

Channels used to interact with HMRC

Table 4.1 Channels Agents used to contact HMRC in the last 12 months

Experience of communication channels

HMRC webpages

Agent Dedicated Line

HMRC digital assistant

Online submission of information

4.2 Customer experience

Overall experience

Elements of customer experience

Clarity on when everything was completed

Clarity on steps needed

Resolution of queries or issues

Acceptability of the time taken to reach end-results

Relevance of information and services

Ease of finding relevant information

Quality of information and guidance

Fairness

HMRC are good at getting tax transactions right

4.3 Experience of tax administration

Managing tax affairs and obligations

Difficulties experienced and complexity

Errors in tax dealings

4.4 Perceptions of HMRC

5. Small Businesses

5.1 Interactions with HMRC

Channels used to interact with HMRC

Table 5.1 Channels used by Small Businesses to interact with HMRC in the last 12 months

Experience of communication channels

Business Tax Account

HMRC webpages

HMRC digital assistant

HMRC telephone helplines

Use of agents

Online submission of information

5.2 Customer experience

Overall experience

Elements of customer experience

Clarity on when everything was completed

Clarity on steps needed

Resolution of queries or issues

Acceptability of the time taken to reach end-results

Relevance of information and services

Ease of finding relevant information

Quality of information and guidance

Fairness

HMRC are good at getting tax transactions right

5.3 Experience of tax administration

Understanding tax obligations

Managing tax affairs and obligations

Difficulties experienced and complexity

Errors in tax dealings

5.4 Perceptions of HMRC

6. Mid-Sized Businesses

6.1 Interactions with HMRC

Channels used to interact with HMRC

Table 6.1 Channels used by Mid-Sized Businesses to interact with HMRC in the last 12 months

Experience of communication channels

Business Tax Account

HMRC webpages

HMRC digital assistant