Research and analysis

Customer perceptions of HMRC third party educational messaging

Published 25 January 2024

Qualitative research to better understand customer perceptions of HMRC educational messaging delivered via third party intermediaries.

HM Revenue and Customs (HMRC) Research Report 744.

Research conducted by NatCen. Prepared by NatCen (Bernard Steen and Olivia Lucas) for HMRC.

Disclaimer: The views in this report are the authors’ own and do not necessarily reflect those of HMRC

Key messages

HM Revenue & Customs (HMRC) are seeking to deliver educational messaging via third party intermediary platforms to expand their reach while ensuring that a focused customer population is targeted. HMRC commissioned this research to gain an in-depth understanding of whether, and how, messaging on third party platforms could support customers to get tax right, at the right time, and provide an improved customer experience compared to messaging from HMRC directly.

The research involved two populations of interest, which are addressed separately within the report:

• HMRC customers who use online platforms to sell goods, let property or for banking
• conveyancing solicitors who use online platforms to complete Stamp Duty Land Tax (SDLT) forms on behalf of their clients who are HMRC customers

For HMRC customers, the purpose of the messages was to encourage customers to consider the need to register with HMRC and correctly report taxable income for tax purposes. Customers interviewed generally wanted to understand their tax obligations from an early point but only when applicable and relevant. The research found that there were 5 main factors which determined the impact of messages:

• whether the message was understood as legitimate
• whether the message was received at the right time in the customer journey
• whether the customer understood the message as relevant to their circumstances
• whether the message was seen as intended to help the customer
• whether the message was perceived as important and urgent

Overall, those who used online platforms to sell goods or let property felt HMRC branded messages on third party platforms were the most likely to generate the intended customer response compared to non-branded messages on third party platforms and direct emails from HMRC. For participants who were shown messaging on a hypothetical bank account page, the non-branded message on the banking platform was felt to be most effective. However, customers felt messages of all types should be supportive in tone and link to a page that both explains why a customer has received the message and contains clear and simple guidance about when tax obligations apply.

For conveyancing solicitors, the purpose of the messages was to encourage conveyancing solicitors to pass on information about tax obligations and reliefs to their clients. Participants felt messaging about tax would be most useful when they are first instructed by their clients to begin the conveyancing process. Messaging within the SDLT form was still welcomed as a final safeguard against error. Conveyancing solicitors generally reported that they would pass HMRC messaging on to their clients. However, a number of factors had to be considered for them to do this:

• receiving the messages at a sufficiently early point to influence the transaction
• the time constraints which mean conveyancing solicitors often complete SDLT forms at speed or delegate the task
• the formatting of the SDLT form itself, which already contains other warning messages
• whether the conveyancing solicitor considers the tax relief to be relevant to the transaction

The findings indicate that messages should present information on tax obligations and reliefs in a way which can be easily shared with the client (for example in PDF format) and be formatted in a way which stands out from the existing form (in red font with a tick box to confirm it has been read). Private sector platforms should link to guidance on HMRC webpages, as this is considered an accurate and trusted source. Messages should also remind conveyancing solicitors that it is the purchaser’s choice what to declare and claim and emphasise the possible financial implications for the transaction.

Executive summary

Overview of the research and aims

HM Revenue & Customs (HMRC) are seeking to deliver educational messaging via third party intermediary platforms to expand their reach while ensuring that a focused customer population is targeted. The aim of the messages is to support customers to pay the right tax, at the right time.  HMRC commissioned the National Centre for Social Research (NatCen) and Walnut to carry out qualitative research to gain an in-depth understanding of whether messaging was effective when delivered to HMRC customers via third party platforms, including online banking compared to messaging from HMRC directly.

Methodology

The research involved 65 in-depth interviews across two groups of interest to HMRC:

• HMRC customers who use online platforms to sell goods, let property or for banking
• conveyancing solicitors who use online platforms to complete SDLT forms

The interviews used hypothetical scenarios and interview stimuli to present participants with different types of messages. While this report presents the views of those interviewed, these are expected to reflect the range and diversity of views within the populations of interest.

HMRC customers were presented with three stimuli:

1. an email direct from HMRC using formal language
2. a message on a third party platform using the third party colours and language
3. a HMRC-branded message on a third party platform using HMRC colours and more formal language

The purpose of the messages was to encourage customers to check whether they needed to register with HMRC and correctly report taxable income for tax purposes.

Conveyancing solicitors were also presented with three stimuli.

1. a non-branded message referring to SDLT reliefs in general and using red formatting
2. a non-branded message including detail on a specific tax relief (either Group Relief or Multiple Dwellings Relief) using red formatting
3. a HMRC-branded message including detail on a specific relief using HMRC colours

The purpose of the messages was to encourage conveyancing solicitors to pass on information about tax obligations and reliefs to their clients.

Key Findings

Did messages delivered via third party intermediaries enable HMRC to reach customers at a more optimal point?

Customers were divided on the most optimal point in the customer journey to receive educational messaging. In general, customers wanted to understand their tax obligations from an early point but only when applicable and relevant.

Those with prior experience of completing Income Tax Self Assessments (ITSA), including business customers, felt messages at account set up would allow them to plan ahead for completing a tax return. In contrast, customers with little or no experience of completing an ITSA and those who used platforms only occasionally wanted to receive it later. For example, once they had started earning on a site.

The research suggests presenting messages at intervals across the customer journey would help ensure HMRC reach customers at the right point for their individual circumstances.

Generally, conveyancing solicitors felt it would be most useful to see messaging at the outset of the conveyancing process, when they are first instructed by their client. This provided the best opportunity to influence the transaction. However, they also welcomed messaging within the SLDT form as a final safeguard against error. When completing the SDLT form, participants felt messaging alongside the section dealing with reliefs would be most effective, rather than messaging within FAQs or webinars which they would have to specifically seek out.

What were customers’ perceptions of educational messages delivered via third party intermediaries?

Both HMRC customers and conveyancing solicitors generally perceived the messages as a genuine attempt by HMRC to help them. Although, some felt that messages were to benefit HMRC rather than the customer.

Across customer groups, participants would likely ignore emails claiming to be sent from HMRC as they assumed they were scams. Messages on online sales and lettings platforms were accepted as legitimate but businesses tended to question the authenticity of messages on online bank account pages that appeared without prior notice. When unsure why messages had been triggered, customers assumed it was due to some wrongdoing on their part. There was a risk that individual and casual platform users would assume messages were not relevant to them as they were not businesses.

On online sales and lettings platforms, customers thought the inclusion of the HMRC logo made messages appear more authoritative. However, customers who were shown messaging via online bank account pages said the logo felt intrusive and they expressed concern about HMRC accessing their data. For HMRC customers, the tone of the messages was generally viewed as appropriate, but customers felt the language was too vague at times.

Conveyancing solicitors explained the importance of messaging on all platforms linking to HMRC guidance as the trusted source on tax reliefs. They felt they already had a good awareness of guidance on tax reliefs but acknowledged that available information can be complex. To be useful, conveyancing solicitors felt messaging should be relevant to the specific transaction rather than generic to every form. It was important that messaging stood out from the SDLT form to ensure it was noticed and read. Conveyancing solicitors described the messages as succinct and found them straightforward to understand, but also suggested the text could be more explicit about telling solicitors what action was required.

Are educational messages delivered via third party intermediaries more likely to support customers to get tax right, at the right time, than HMRC direct messages?

Overall, HMRC branded messages on third party platforms were felt to be the most likely to result in customers considering whether they needed to register with HMRC and correctly reporting taxable income for tax purposes , compared to non-branded messages on third party platforms and direct emails from HMRC. However, the impact of the messages was determined by 5 key factors:

• appropriate timing of the message: To ensure messaging reaches customers at the right time for their individual circumstances, messaging could use some level of personalisation and be tailored to the needs of each touchpoint to increase the relevance of the message to the customer at each stage
• customers trusting the legitimacy of the message: Where email is used to distribute educational messaging, including options to verify the correspondence could increase customer confidence. Similarly, informing business customers beforehand if introducing messaging on banking platforms could improve trust in the authenticity of these messages
• messages being perceived as important or urgent: Including the HMRC logo on online sales and lettings platforms could improve the likelihood that messages are understood as important and requiring action
• customers understanding that the message is relevant to their situation: Including more information upfront about why the customer has received the messaging could help ensure they understand it as relevant to them. For example, a message could state that an obligation might not apply immediately but could in the future
• customers perceiving messages as HMRC trying to help them: Using a supportive and helpful tone and framing the motivation for acting as a personal benefit rather than avoidance of reproach could further reduce resistance to taking action

In general, conveyancing solicitors said they would pass on messages to their clients, but for this to happen, there were a number of points to consider:

• timing of the message in the conveyancing process: Conveyancing solicitors suggested alternative ways that messaging could be presented at the outset of a transaction, in order to better influence the decision making of the purchaser. For example, alongside the SDLT calculator on the GOV.UK webpage
• time constraints: Links in messages could produce guidance in a format (such as PDF) that can be quickly and easily shared with clients. Presenting messages in a way which is more likely to be noticed by junior colleagues, may increase the likelihood of messages reaching clients when the task is delegated
• formatting of the SDLT form: To ensure messages stand out from existing warning and information messages, red colouring, exclamation marks and different font should be used, and the HMRC logo included on private platforms
• whether the conveyancing solicitor considers the message relevant to the transaction: To avoid risk of confusion or messages losing their potency, they should be tailored to the specific transaction rather than included in every form. Messaging should indicate action is required by emphasising it is the purchaser’s choice whether to claim

1. Introduction

1.1 Background to the research

HMRC are seeking to deliver educational messaging via third party intermediary platforms to expand their reach while ensuring that a focused customer population is targeted. This activity is aimed at improving the customer experience and supporting customers to pay the right tax, at the right time.

HMRC commissioned the National Centre for Social Research (NatCen) and Walnut to carry out research to gain an in-depth understanding of customer perceptions of the delivery of messages via intermediaries and what can help drive reductions in customer errors via their interactions with third party intermediaries. Findings from the research will inform the design and delivery of future HMRC educational messaging, either directly or via third party intermediary platforms, and guide HMRC on where to deploy future resource to effectively deliver messaging via third parties. 

1.2 Research aims

The aims of the research covered the following 3 key themes and related research questions:

1. Reaching customers at the right point in the journey

• does messaging on third party platforms enable HMRC to reach customers at a more optimal point?
• are customers more or less likely to read messages on third party platforms?

2. Customer perceptions of messages on third party platforms

• what do customers see as the intention behind messaging on third party platforms?
• do customers view messaging on third party platforms as legitimate compared to direct HMRC messages?
• do customers understand messages on third party platforms as relevant to them?
• what are customers views on the formatting, tone, colour and placement of messages on third party platforms?

3. Implications for supporting customers to get tax right, at the right time

• are messages on third party platforms more likely to support customers to get tax right, at the right time and lead to an improved customer experience?
• how does the use of messages on third party platforms impact customers’ perceptions of HMRC and third parties?

1.3 Overview of methods

The research involved 65 in-depth interviews across 4 case studies: 3 with HMRC customers (those who sell using online platforms, those who let property using online platforms, businesses who use an online personal bank account for business transactions), and a fourth with conveyancing solicitors who complete SDLT forms using an online platform.  

1.3.1 Topic guide and stimulus development

HMRC Customers

A scoping workshop was held at the outset of the research to refine the research aims and HMRC’s priorities for testing. NatCen and Walnut then developed, in collaboration with HMRC, interview stimuli that presented messages in a variety of formats. The interviews used hypothetical scenarios to present customers with messages either direct from HMRC or on a third party platform. Participants were presented with scenarios that were relevant to their own circumstances.

3 different types of messages were developed and tested:   

1.An email direct from HMRC using formal language. For example:

“Dear Sir/ Madam

We are writing to inform you that our records show you may be in receipt of income in addition to your employment income. 

Tax is usually deducted automatically from wages and pensions. People and businesses with other income must report it in a tax return. If you need to send a Self-Assessment tax return, fill it in after the end of the tax year (5 April) it applies to.

For further information, please read the guidance”.

2.A message on a third party platform using the third party colours and language. For example:

“You may need to let HMRC know about income made from your account. Guidance is available here”.

3.A HMRC-branded message on a third party platform using HMRC colours and more formal language. For example:

“Remember, you may need to declare income made to HMRC. Guidance is available here”.

The purpose of the messages was to encourage customers to consider the need to register with HMRC and correctly report taxable income for tax purposes. Customers who sold online or let property online were presented with messages on the registration or account set up page of a hypothetical platform. Businesses who used a personal online bank account for business transactions were presented with messages on a hypothetical bank account homepage.

Conveyancing solicitors

The purpose of including this participant group was twofold: to understand the role of the conveyancing solicitor as an intermediary between HMRC and the customer, and to understand conveyancing solicitors’ responses to messaging via public and private platforms used to complete SDLT forms.

Interviews began with an exploratory section to better understand the conveyancing process and the steps involved in completing and submitting an SDLT form. This section included exploration of whether participants submitted SDLT forms using the GOV.UK webpage or using a private platform for case management. Participants were then presented with stimuli showing different types of messages that could be presented within the SDLT form. A similar process of design was followed for this participant group.

3 different types of messages were developed and tested.

1.A non-branded message referring to SDLT reliefs in general and using red formatting.

“This transaction may be eligible for Stamp Duty Land Tax relief and it is the purchaser’s choice whether to claim. Further details about tax reliefs can be found here (opens new tab)”

2.A non-branded message including detail on Group Relief or Multiple Dwellings Relief using red formatting.

“Group relief can be claimed where property is being transferred between companies that are part of the same group. Further details about this relief and the conditions that must be met can be found here (opens new tab)”

3.A HMRC-branded message including detail on Group Relief or Multiple Dwellings Relief using HMRC colours.

“Group relief can be claimed where property is being transferred between companies that are part of the same group. Further details about this relief and the conditions that must be met can be found here (opens new tab)”

The detailed messages referred to either Group Relief or Multiple Dwellings Relief depending on whether the conveyancing solicitor dealt with commercial or residential conveyancing. All messages were presented at the section of the SDLT form that referred to SDLT reliefs and the purpose of the messages was to encourage conveyancing solicitors to pass on information about tax reliefs to their clients.

For all case studies, feedback was provided to HMRC following early interviews and final amendments made to the stimuli to ensure that they were fully meeting the objectives of the research.

1.3.2 Sampling and recruitment

The research used a purposive sampling approach to include key groups of interest. The case studies chosen for the research reflect HMRC’s areas of interest for possible future use of messaging via third party intermediaries. This report only presents the views of those customers and conveyancing solicitors interviewed as part of the research. However, these are expected to reflect the full range and diversity of views within the populations of interest. The research involved:

• 15 interviews with those who sold goods using an online platform
• 15 interviews with those who let property using an online platform
• 15 interviews with businesses who used an online personal bank account for their business transactions
• 20 interviews with conveyancing solicitors who completed SDLT forms on behalf of a client using an online platform

A short questionnaire was used to determine eligibility to participate with quotas set against characteristics including gender, age and years of experience. Additional quotas were set against characteristics of interest specific to each group. For example, for customers that sold online, additional quotas were set for individual and business sellers, and whether they sold online as their primary income, to supplement other income or only to dispose of items they no longer wanted or needed. For conveyancing solicitors, additional quotas were set on whether they were involved with residential or with commercial conveyancing, and the number of years they had been a conveyancing solicitor. Further detail on the achieved sample design can be found in  Table 1 and Table 2 in Appendix A.

Across the HMRC customer sample, experience existed along a spectrum: from those who were new to using the online platforms and had not previously completed an Income Tax Self Assessment being the least experienced, to those who had used the platforms consistently for many years and had completed an Income Tax Self Assessment on multiple occasions being the most experienced. Throughout the report, customers are referred to as more or less experienced in relation to this spectrum. The report also uses the term ‘casual user’ to refer to those who used the platforms only occasionally and not as a main source of income.

1.3.3 Fieldwork

Interviews were carried out between July and September 2023. Each interview lasted approximately 45 minutes and was carried out using Microsoft Teams. Interviews were recorded with the participant’s consent and transcribed.

1.3.4 Analysis

NatCen’s framework approach was used to summarise the rich qualitative data on a cross-sectional case and theme basis. Findings under key themes related to the study aims and research questions were summarised across each interview. This enabled the researchers to look across the summarised data to identify key insights about how participants views, perceptions and behaviours varied across key characteristics.

2. HMRC Customers

This chapter explores the research themes for HMRC customers. It begins by addressing whether messaging on third party platforms allows HMRC to reach customers at a more optimal point in the customer journey than messaging directly from HMRC. It then explores customer perceptions of messages on third party platforms, including the perceived intention behind the messages. The final sections discuss the implications of the research findings for improving the customer experience and supporting customers to pay the right tax, at the right time.  

2.1 Key findings

• HMRC customers were divided on the most optimal point to receive educational messaging, but, in general, wanted to understand their tax obligations from an early point when these were applicable and relevant
• whether HMRC customers would be more or less likely to read messages on third party platforms was linked to when in the customer journey they wanted to receive them. For example, customers who wanted to see messaging only after they had started earning on a site, might ignore or deprioritise messages received at account registration
• customers generally viewed messages as a genuine and proactive attempt to help them before they made a mistake. However, some felt that messages were intended to benefit HMRC rather than the customer
• all HMRC customer groups questioned the legitimacy of HMRC emails, assuming they were scams. Messages on online sales or lettings platforms were generally accepted as legitimate, but there was a risk that customers would question the authenticity of messages on online banking platforms
• casual platform users and individuals supplementing other income could assume messages were not relevant to them as they were not businesses and ignore the messages altogether, while experienced customers suggested they would already be aware of their obligations
• the tone of messages was generally seen as appropriate and non-threatening. However, the language at times was too vague and could lead to misunderstanding. Inclusion of the HMRC logo led to different emotional responses depending on the context in which the messages were shown
• the research highlighted 5 key features of educational messaging which determined customers likelihood to report that they would check if they needed to register with HMRC and correctly report taxable income for tax purposes:

1. Appropriate timing of the message in the customer journey
2. Customers trusting the legitimacy of the message and not thinking it is a scam
3. Messages being perceived as important or urgent enough for customers to take notice
4. Customers understanding that the message is relevant to their situation
5. Customers perceiving messages as HMRC trying to help them.

• as well as checking whether they needed to register with HMRC, other reported responses to the messages included keeping records in anticipation of having to complete a Self Assessment and setting aside funds for an end-of-year tax bill.

2.2 Reaching customers at the right point in their journey

The research explored whether delivering messaging about tax obligations via third party platforms would enable HMRC to reach customers at a more optimal point in their journey compared to messaging direct from HMRC alone. This section examines participant responses to messaging presented at various touchpoints. For HMRC customers, touchpoints ranged from registration or business set-up to a time closer to the tax return deadline.

Participants were asked to consider when it would be most useful to receive each of the message types (email direct from HMRC, non-branded message on the third party platform and the HMRC-branded message on the third party platform). Messaging presented at the following stages in the customer journey gave rise to different considerations for customers:

• at registration or account set up
• triggered by transactions on the customer’s account
• closer to the deadline for completing a return

Customers were divided on the most optimal point to receive this messaging. In general, they wanted to understand their tax obligations from an early point, but only when these were applicable and relevant.

At registration or account set up

To receive messaging when first setting up an account or registering on a site before any income had been generated felt potentially too early to customers. Participants explained that they would not yet know whether they could make money on the platform and therefore whether the messaging would be applicable to them.

“I think I’d at least want to trade and see if I am going to make a success of the business and generate income before I start receiving this.” (Customer who sells online, male, 18 to 34 years)

For this reason, customers described messaging about their tax obligations at this stage feeling “overbearing”. Others suggested they would ignore or deprioritise messages if they did not require immediate action. However, customers’ emotional and practical responses to seeing messaging at registration were in conflict, as they could also see benefits to being informed of their tax obligations from the outset.

[In response to third party message at site registration] “When I think about it emotionally it’s not the right time, but when I think about HMRC and how the world works, it’s totally the right time.”  (Customer who lets property online, female, 35 to 49 years)

These perceived benefits varied by customer type and experience. More experienced and business customers wanted to be able to plan for and set aside funds for their end-of-year tax bill, as well as know what records they needed to keep in order to complete their Self Assessment tax return. This was possibly because of greater awareness of the implications of additional tax obligations among these customer groups. Less experienced or casual platform users wanted to be able to decide whether the additional income they could make through the site was worth the added effort involved in managing their taxes.

Triggered by transactions

This stage in the journey included messaging delivered after customers had started to earn income on a site or messaging in response to certain bank account transactions. Customers who wanted to see messaging at a later point included both business and individual or casual platform users.

Reasons for preferring this touchpoint once again varied by customer group. Business and experienced customers suggested that they would be too preoccupied with the process of setting up their account or business to engage with messaging any earlier. Casual users and individuals who used platforms to supplement other income explained that they might not make any money from a platform for a period of time and could therefore forget about the message before it became applicable. Instead, receiving messaging after they had reached a certain income threshold would be more appropriate than at account set up, as it would be clearer that additional tax obligations applied.

Where messages were triggered by transactions on a bank account, customers tended to assume that HMRC could access their personal transaction data. This felt intrusive to customers and they wanted to be told beforehand that this messaging would be used and the terms under which their bank was collaborating with HMRC, including the extent of data sharing.

Closer to the deadline for completing a tax return

Receiving messaging closer to the deadline for completing a return was seen as a useful reminder. This view was held by those who had been using platforms for a long time and whose tax status may have changed since registration, as well as business customers who acknowledged they could forget or overlook obligations due to competing priorities. However, neither group wanted to see messaging only at this stage. Instead, messaging early in the customer journey, with reminders every 3 to 6 months was preferred.

There was a group of new or inexperienced customers that said they would be more likely to act on a message received closer to the deadline. This was due to the added time pressure of receiving the message later.  However, in general, it was felt that seeing messaging for the first time at this point would give customers insufficient time to plan and prepare to meet their tax obligations.

“I don’t think it should be near the deadline of when you’ve got to complete it because then you could potentially have a really big bill to pay. If you’re not completely clear on the tax that you owe, you could come unstuck if you didn’t have enough put aside.” (Business who uses a personal online bank account, female, 18 to 34 years)

2.3 Customer perceptions of messaging via third party intermediaries

The following paragraphs explore how HMRC customers perceived the different types of messaging, including their views on the intention behind the messages, whether they were viewed as legitimate and relevant, and their views on the formatting of the messages. 

2.3.1 Views on the intentions behind messaging via third party intermediaries

Messaging on third party platforms was generally welcomed by customers. However, among less experienced and casual platform users and individuals using platforms to supplement other income, there was a view that messages were intended to increase HMRC’s revenue rather than help customers. These users felt they were only earning a small amount using these platforms so were being unfairly targeted. They suggested HMRC should be focusing on tax-evasion amongst large businesses. However, they also understood why messaging was needed given the increase in those using third party platforms for income:

“I think, because the HMRC are trying to get more money out of people, to be honest. That’s it. I think they’ve obviously realised that there’s a massive growth in people selling stuff online now. There’s so many more.” (Customer who sells online, male, over 50 years)

At the same time, customers of all types welcomed that HMRC were pre-warning them of their obligations, rather than waiting until after mistakes had been made. They described HMRC as being proactive.

Customers who used online personal bank accounts for their businesses but were less confident completing their tax returns appreciated this reminder of their obligations:

“This looks a lot more guiding, and I appreciate that from HMRC. Especially as small business owners, sometimes we just don’t know that we’re doing things wrong, so I appreciate a more mentoring, guidance approach, as opposed to a strict disciplinary approach.” (Customer who sells online, male, 18 to 34 years)

2.3.2 Views on the legitimacy of messaging via third party intermediaries

Customer reactions to the email and messages depended on the perceived security of the channel through which the communication was received. In general, customers questioned the legitimacy of emails and said they would assume they were scams. This was often due to prior knowledge or experience of phishing scams in emails.

Those selling or letting online accepted the legitimacy of messages on third party platforms. This was due to messaging appearing generic, so customers understood why it was being presented to them (i.e. as a standard part of the registration process). However, there was a risk that business owners could question the authenticity of messages shown on their online banking platform (both branded and non-branded). This was due to the perceived privacy of a banking platform and the proximity of the message to their financial information.

“It kind of looks like maybe it’s been hacked or it’s fake or something like that.” (Business using personal online bank account, male, 18 to 34 years)

In general, all customers wanted to know why they were seeing a message or had received an email. If uncertain, they tended to think messages had been triggered by something they had done or failed to do, rather than being a generic message seen by all users. Banking customers wanted to be told by their banks that this type of messaging from third party intermediaries would be used beforehand, and some also wanted an explanation around what data HMRC have access to:

“I think I would want an explanation or some information via email before receiving this, before HMRC popping up in my bank, you know? …I’d want a heads-up, if you like, because I just think anything out of the ordinary with banking - or HMRC - I always question because there are so many scams around and things like that as well.” (Business owner using personal online bank account, female, 18 to 34 years)

2.3.3 Views on the relevance of messaging via third party intermediaries

This section addresses how views on the relevance of messaging varied depending on how it was triggered and on customer circumstances. Customers did not always understand why the messages were being shown to them, and others felt that the messages were not relevant to them and their personal circumstances. When customers were unsure, they often assumed that they had triggered the message by their own wrongdoing, causing worry.

Messages triggered by customer

When uncertain about the messages, customers assumed they had been triggered by their (in)action. This created worry for both those selling or letting online and businesses using an online personal bank account.

Less experienced and casual platform users and individuals supplementing other income were worried by the email, viewing it as an accusation of wrongdoing. They also questioned how HMRC would know about any extra income they were getting, describing this, for example, as “a bit big brother-y”.

In contrast to this, businesses using an online personal bank account found the messaging on their bank account to be intrusive and assumed HMRC was querying their transactions.

“It’s one thing to be helpful, but that’s almost suggesting that they’re in cahoots with HMRC and they’re telling HMRC stuff that they shouldn’t be telling HMRC!” (Business using personal online bank account, female, over 50 years)

Customer circumstances

Both experienced and casual users could question the relevance of the messages to their circumstances. Experienced users felt that the messages were no longer relevant to them as they were already aware of all their obligations and would have already performed the required actions.

Casual users and individuals who used the platforms to supplement other income could assume the messages were not relevant to them because they were not businesses and did not consider themselves to be self-employed (if they were, for example, only occasionally renting out their home). Other customers in these groups did not consider the income made through the platforms to be significant enough to warrant declaring.

If genuine, emails were viewed by these customers as holding more authority. The emails had the advantage of feeling more direct and personal to the customer, and therefore were more likely to be seen as relevant and requiring action. It was also raised that the email could be made even more personal and increase legitimacy by using the customer’s name and a personal reference number if they have one already.

2.3.4 Views on formatting, tone and visual aspects

The following section explores customer views on the language and tone of messages as well as use of the HMRC logo and branding. 

Views on language and tone

Customers generally found the tone of messages to be appropriate, professional and non-threatening but there was a risk that the vagueness of the language could lead to a misunderstanding of the purpose.  In relation to businesses using online personal bank accounts, for example, this included assuming the message was telling them they needed to switch to a business bank account instead.

The messages on third party platforms (see section 1.3.1 HMRC customers example 2) were viewed as vaguer than the email and participants felt they needed more information about the requirements of the customer. Customers also felt the messaging should make it clearer where there was an obligation to act, for example, using ‘you need’ rather than ‘you may need’. It should be noted that HMRC are not able to determine at this stage whether or not a customer needs to declare income. Therefore, messaging could instead include more detail upfront on why the customer has received it and require customers to check whether it applies to them. 

Customers felt that the email (see section 1.3.1 HMRC customers example 1) gave them the most detail about what they needed to do but that it should also include the deadline for submitting a tax return.

Views on the use of the HMRC logo and branding

For customers who were selling and letting online, including the HMRC logo meant the message via a third party platform felt more official and that there would be consequences if they did not act on it. Customers felt they would pay more attention to it for this reason:

“It looks a bit more authoritative, and probably I would take more notice of that than I would the other [non-branded] one” (Customer who lets property online, female, over 50 years)

Although inclusion of the logo could cause worry to some customers, it also made them more likely to act, as discussed in section 2.4.1 below.

For business owners using a personal online bank account, the HMRC logo on their banking page felt intrusive. This was because customers viewed their bank accounts as private and as a safe space:

“Why am I getting a message from the tax man through my personal, private and confidential, online banking?” (Business using personal online bank account, female, over 50 years)

For a group of these customers, the presence of the logo meant the participant read the tone as more authoritative, even when the wording was the same as the non-branded message.

2.4 Implications for getting tax right, at the right time

This section discusses the implications of messaging for whether customers said they would check if they needed to register with HMRC and correctly report taxable income for tax purposes . The following paragraphs cover many of the same themes discussed elsewhere in the report, but with a focus on the key features of messages that determined the impact of messages and related considerations for HMRC.

2.4.1 Which messages are more likely to lead customers to check if they need to register with HMRC and correctly report taxable income for tax purposes

The desired behaviour in response to the messages was that customers would check whether they needed to register with HMRC and correctly report taxable income for tax purposes. The following sections explore the 5 key features set out in section 2.1 in more depth, how different customer groups responded differently and considerations for how HMRC can adapt messages on third party platforms going forward. Each section looks at how each of these features encouraged or discouraged the desired behaviour.

It is important to be clear about the limits of the research method used. Customers were shown scenarios and asked how they thought they would respond, which can differ from how customers actually respond when faced with a real situation. A range of interviewing techniques were used to encourage participants to fully reflect on how they would actually respond to messages. Nonetheless, this section should be read as a summary of the likely or potential behavioural impacts of messages, rather than as conclusive evidence that a certain behaviour would or would not occur.

Timing of the message in the customer journey

As discussed in section 2.2, customers disagreed on the optimal point to receive messages. In general, customers wanted to be informed about tax obligations at an early point, but only once they were applicable and relevant. Responses to the messages varied across customer groups depending on when they are presented with the messaging.

Messaging presented at the outset of their journey:

This included messaging presented when first registering on a platform or when first setting up a business. For experienced and business customers, seeing messages at this point in the journey tended to lead to forward planning and record keeping. These early messages would prompt them to find out what documents they need to collect throughout the year in order to complete the Self Assessment. However, another group of business customers said they might overlook messages at this stage, being more preoccupied with setting up their account and ensuring it was successful.   

Casual platform users and individuals supplementing other income said that they would use the information about their tax obligations presented at this point to decide whether the additional income was worth the extra effort involved in managing their taxes. This could lead to users deciding not to sell or to let property in this way.

“Usually, if I see something like that, I think, oh, hold on a minute, if I do that, they’re going to want me to pay tax on it, so it would kind of scare me off if I saw that.” (Customer who sells online, male, over 50 years)

However, there was also a risk that customers in this group would ignore messages altogether at this stage, assuming they were not relevant to them.

Messaging presented at a later point: 

This included messaging triggered by customer transactions (including banking transactions, earning money or reaching a certain income threshold on a site) or messaging closer to the tax return deadline. There was a risk that messages triggered in response to customer transactions could raise concerns about data privacy, with participants saying they might contact third parties for reassurance. However, in general, customers said they would be more likely to engage with messages presented at this point, as they were more clearly relevant to them.

A group of less experienced and casual users said they would be more likely to act on messages delivered closer to the tax return deadline, as the time pressure created a greater incentive to act. Although across all customer types, there was a preference to receive a reminder at this point (rather than the first message of this type), to ensure they had sufficient time to plan and prepare for a tax return.

Potential considerations for HMRC

These customer responses gave rise to a number of potential considerations for HMRC:

• using reminders to present the messaging every 3 to 6 months along the customer journey, to ensure it reaches the customer at an appropriate point for their circumstances. There was a preference among customers to include an option to opt out of continuing to receive messages once they had been acted upon
• using some level of personalisation to trigger the messages, rather than presenting them generically to everyone using a platform. For example, presenting messages only once a customer had started making money through the site
• tailoring the messaging to the needs of each touchpoint to increase the relevance of the message to the customer at that stage

Trust in the legitimacy of the message

As discussed in section 3.3.2, a key obstacle for customers engaging with messages was trust in their legitimacy. Customers needed to trust that the message they received (whether direct from HMRC or on a third party platform) was not a scam but a genuine communication.

Across all groups, customers tended to assume the email sent by HMRC was a scam so would ignore or delete the message before reading it or be too concerned to click on the guidance link. In some instances, customers indicated that they may call HMRC to try to validate the legitimacy of the email.

In contrast, customers selling or letting online tended to accept the legitimacy of messages on third party platforms and were therefore more inclined to engage with the messages and visit the guidance link. However, businesses using an online personal bank account questioned the authenticity of messages on their account homepage (both branded and non-branded) and said they would contact their bank for reassurance.

Potential considerations for HMRC

These customer responses highlighted the following potential considerations for HMRC:

• providing options for customers to verify email correspondence from HMRC if educational messaging is distributed in this way
• informing business customers beforehand if introducing messaging on banking platforms
• avoiding the use of HMRC branding in messaging within banking platforms to maintain the sense of online bank accounts as a private space

Relevance of the message to their circumstances

There is a risk that individual and casual platform users assume messages on third party platforms are not applicable to them as they are not a business or because they feel they only make a small amount of money through the sites. In these circumstances, customers would ignore the messages and take no further action.

More experienced and business customers knew the messages were relevant to them, but said they were already aware of their obligations and would have checked and registered with HMRC at the earliest opportunity. Therefore, they suggested that the messages were unlikely to cause them to act differently. However, a group of businesses who used an online personal bank account misunderstood the messaging as requiring them to open a business account instead of using their personal bank account.

Potential considerations for HMRC

These findings suggest HMRC could consider the following in future educational messaging:

• including additional information in the message upfront about why the customer is seeing the message, so they understand that it may still apply even if they are not a business and/ or to reduce the risk of misunderstanding the message’s purpose
• acknowledging that the message might not apply immediately but could in the future when the customer has been trading on the site for longer and made a certain level of income

Whether perceived as urgent and important

Customers selling or letting online felt that non-branded messages on third party platforms were less scary, but those that used HMRC branding looked important and authoritative. Given this, they said they would be more likely to take notice of and act on messages with HMRC branding. This indicates that, where the customer is undertaking an unrelated activity, they welcome a stronger nudge to consider tax obligations. 

Businesses using an online personal bank account tended to see the branded message as intrusive and crossing a boundary into a private protected space. These customers might call their bank to complain and investigate what data has been shared with HMRC. 

Possible considerations for HMRC

HMRC could consider the following measures in response:

• including HMRC branding in messages on online sales or lettings platforms but opting for non-branded messaging on banking platforms
• where HMRC branding is to be used on a banking platform, ensure that information provided to the customer prior to use includes details on the relationship between the bank and HMRC as well as reassurances around data sharing
• framing the required action as a small task that can be progressed quickly to further reduce resistance to acting. This could include, for example, showing key information in bullet points with drop downs for further detail when customers click on the link

Whether perceived as an attempt to help

While customers welcomed the messages, there was a view that they were intended to benefit HMRC rather than the customer, particularly among inexperienced and casual users. Customers who saw the messages as an attempt to guide and support them were more likely to say they would click on links to further guidance, expecting it to be helpful and easy to use.

Where customers held more negative views, this created resistance to taking action as they resented that they were being targeted by HMRC. These customers were therefore less likely to engage with the messaging, including clicking on links.

Potential considerations for HMRC

In response, HMRC could consider: * changing the motivation for acting on the messaging, framing this through the language used as to personally benefit the customer rather than to avoid reproach

Overall, HMRC branded messages on third party platforms were felt to be the most likely to result in customer checking whether they needed to register with HMRC and correctly reporting taxable income for tax purposes, compared to non-branded messages on third party platforms and direct emails from HMRC. However, customers felt that messages of all types should link to guidance which explains both why they have received the message as well as the circumstances when additional tax obligations would arise (including relevant income tax thresholds). Links should also lead to clear and simple information on where to complete a tax return and by what date.

2.4.2 Perceptions of HMRC and third party intermediaries

HMRC customers were asked whether the use of messages on third party platforms would affect their views of HMRC or third party intermediaries. Messages on third party platforms were generally seen by customers as a genuine attempt by HMRC to educate them on their tax obligations. Customers liked that HMRC was taking a more integrated approach with third party platforms, to help them to get their taxes right from an early point rather than penalising them for mistakes later on.  

“I think it’s good that they’re prewarning people, rather than saying, ‘Right, I know you’ve been selling stuff online for five years now, so we can see that you’ve earned £6,000. We want 20 per cent of that.” (Customer who sells online, male, over 50 years)

Despite this, there was a risk that messages could lead to negative perceptions or undesirable responses by customers.

Where messages were assumed to be triggered in response to information specific to the individual, customers had concerns about how and why HMRC accessed their data. This included emails direct from HMRC and HMRC messages on bank account pages and was particularly the case when messages were assumed to be triggered in response to information considered to be private by the customer. In those situations, customers perceived HMRC to be overly intrusive and described them as “Big brotherish” or “crossing a boundary”.

“There will be some people who feel that it’s a little bit Big Brother and that actually having HMRC pop up on a different site is a little bit intrusive.” (Customer who let property online, female, 35 to 49 years)

Others took a negative view of the messages, feeling that HMRC was unfairly targeting customers who were only earning a relatively small amount of additional income from using online sales or lettings platforms. They thought HMRC should focus on larger companies that owed larger sums of tax.

3. Conveyancing solicitors

This chapter explores the research themes for conveyancing solicitors. It begins by addressing whether messaging within the SDLT form allows HMRC to reach conveyancing solicitors at an optimal point in the conveyancing process. It then explores conveyancing solicitors’ perceptions of the messages, including the formatting and tone. The final sections discuss the implications of the research findings for improving the customer experience and supporting customers to pay the right tax, at the right time. 

3.1 Key findings

• across the conveyancing solicitor sample, participants felt that the best time to receive messaging on SDLT reliefs was at the outset of the transaction when the conveyancing solicitor was first instructed by the client. This is long before they engage with the SDLT form. They also approved of including the messages within the form as a final safeguard against error.
• conveyancing solicitors generally viewed messages as a genuine and proactive attempt to help customers before they made a mistake. However, some felt that messages were intended to benefit HMRC rather than the customer or conveyancing solicitor.
• messages with detail on a specific type of relief were preferred by participants as more informative, but only if relevant to the transaction. If more detailed messages appeared for all transactions, this could cause confusion.
• to be perceived as legitimate, the messages should be integrated consistently across platforms as well as included on HMRC’s webpages and guidance.
• conveyancing solicitors generally felt the messages in red formatting and as pop-ups were more likely to draw their attention.
• participants reported that they would pass on the messages on SDLT reliefs to their clients. However, in order for this to happen a number of barriers had to be overcome: appropriate timing of the message in the conveyancing process, time constraints on the solicitor, formatting of the SDLT form, and the solicitor’s view of the relevance of the messaging to the transaction.

3.2 Reaching solicitors at the right time in the conveyancing process

Similar to customers, HMRC were interested in exploring whether delivering messaging within the SDLT form would enable them to reach conveyancing solicitors at a more optimal point in the conveyancing process and result in conveyancing solicitors passing the message on to the client.  

Typically, conveyancing solicitors receive instruction from a client to proceed with a purchase. Contract details are then drawn up and agreed with the client over a period of time, after which contracts are exchanged with the seller. As part of the transaction process, the conveyancing solicitor completes the SDLT form on behalf of their client, submits this to HM Land Registry and organises payment of the calculated fee. Solicitors can complete the form directly on the GOV.UK website or through a private platform for case management. There are a number of SDLT reliefs that can be claimed within the form, depending on the details of the transaction. Two such reliefs are Multiple Dwellings Relief and Group Relief. It is the client’s decision whether they are eligible for and wish to claim a relief.

The research involved exploration with conveyancing solicitors of their experiences of the conveyancing process and identified 3 distinct stages during which messaging could be delivered: 

• at the outset of the transaction
• during preparation and exchange of contracts
• on completion of the transaction

These are explored in more detail below.

At the outset of the transaction

Generally, conveyancing solicitors considered the outset of the transaction to be the most helpful time to receive messaging from HMRC. Participants explained that they tended to discuss reliefs with their clients as early as possible in the conveyancing process. This was because SDLT could have substantial financial implications for a transaction. Receiving messaging at this point would allow conveyancing solicitors to factor the content of messages into these conversations with clients and it would be the best opportunity to influence the transaction. Where the SDLT matter was complex, participants explained that they would signpost the client to speak to an accountant or tax specialist.

However, participants acknowledged that it could be difficult for HMRC to engage them at this point. They explained that interaction with HMRC generally comes later (that is, through the SDLT form). However, participants offered a number of suggested alternatives to messaging within the SDLT form. These are explored further in section 3.3.4. 

During preparation and exchange of contracts

As the SDLT form must be submitted to HM Land Registry within 14 days of purchase completion, conveyancing solicitors explained that they may draft the form ahead of time during preparation of contracts. They then tended to share a draft version of the form with the client to approve and sign-off before submission. Participants suggested that messaging presented in the SDLT form could be passed on to clients as part of this process. However, this opportunity did not exist equally across all conveyancing solicitors or firms, as the approach to client sign-off varied by experience and firm size. Conveyancing solicitors also explained the SDLT completion is often delegated to other colleagues, such as paralegals or legal secretaries, who have no direct relationship with the client. They complete the forms based on instruction from the conveyancing solicitor. This adds an additional intermediary between HMRC and the client and further complicates the likelihood of a message being passed on to a client.

In any case, participants emphasised the importance of messaging being received prior to exchange of contracts, when the terms of the transaction can still be easily altered.

“… once contracts are exchanged, the parties are committed, and there’s no turning back. So ideally, any messaging that HMRC gives needs to be at a stage where the client still has the ability to either not proceed, or proceed in a different way…” (Commercial conveyancing solicitor, less than 10 years of experience)

On completion of the transaction

Participants explained that receiving messaging within the SDLT form after purchase completion would be the last possible moment that messaging could be acted upon. It was generally viewed that covering the topic of tax reliefs with clients at this stage would be negligent and give little time to properly advise the client. 

“If you give yourself enough time, if something arises then you can deal with it instead of at the last minute when you’re about to complete…Well, you’re not going to have a very happy client, are you, if you’ve given them wrong instructions to begin with.” (Commercial conveyancing solicitor, more than 10 years of experience)

However, solicitors still welcomed the inclusion of messaging within the form, as a final safeguard against error. Purchase completion may be weeks or months after the solicitor is first instructed by the client so it would act as a useful reminder to check the status of prior discussions. 

“You might have forgotten exactly what the discussion was at the point of exchange. So it’s very, very useful for it to be drawn to your attention in this  manner at the time you’re completing the return so that you don’t forget about it.” (Commercial conveyancing solicitor, less than 10 years of experience)

3.3 Conveyancing solicitor perceptions of messaging via the SDLT form

This section explores how conveyancing solicitors perceived the different types of messaging, including their views on the intention behind the messages, whether they were viewed as legitimate and relevant, and their views on the formatting of the messages.

3.3.1 Views on the intentions behind educational messaging

Conveyancing solicitors generally welcomed messages within the SDLT forms, perceiving them as supportive and an attempt to help by HMRC.

“It’s a really good idea, basically it feels more like you’re working in partnership with HMRC, rather than being isolated…you’re working together to get the accurate Stamp Duty calculation.” (Commercial conveyancing solicitor, more than 10 years of experience)

However, views varied depending on whether the messages were generic or tailored to the transaction. Messages triggered by information entered into the SDLT form were viewed as helpful, but there was a risk that generic messages included in every form could be viewed as HMRC’s attempt to protect themselves from blame for errors, rather than helping solicitors.

“It’s not actually them helping the conveyancers stopping getting it wrong. It’s just covering them that you could’ve claimed relief.” (Residential and commercial conveyancing solicitor, more than 10 years of experience)

3.3.2 Views on the legitimacy of educational messaging

Conveyancing solicitors highlighted that the messages should be available on HMRC webpages alongside existing guidance, to provide reassurance that the messaging is accurate and can be trusted. Solicitors who used private platforms emphasised the need for consistent integration of these messages across all platforms, with links to HMRC’s guidance, in order to effectively reduce tax errors.

“Everyone should be working off the same questions/systems, I think that would just reduce the amount of errors. If people are working from different ones and it’s not collated correctly, then it’s likely to have more errors.” (Residential and commercial conveyancing solicitor, less than 10 years of experience)

3.3.3 Views on the relevance of educational messaging

This section explores views of conveyancing solicitors on the relevance of HMRC messaging in the context of SDLT reliefs, given their own and their clients’ existing knowledge of reliefs and relevance to the specific transaction.   

Solicitors questioned the relevance and need for the messages, as they believed they were already aware of guidance on tax reliefs:

“Well, the first one about the purchaser’s choice whether to claim, it just feels like a bit of a blame culture job because of course as conveyancers, of course we know that!” (Residential and commercial conveyancing solicitor, more than 10 years of experience)

Despite their awareness, they emphasised that guidance on tax reliefs is complex, that they are not tax experts and that they are required to advise clients to seek independent advice from tax advisors, rather than provide this advice directly themselves. If unsure about the content of messages, participants said they would raise their queries with tax specialist colleagues or refer to the HMRC guidance on the GOV.UK website and would only contact HMRC directly as a last resort. There was a view that the issue is perhaps one of educating conveyancing solicitors on tax reliefs and making the guidance clearer, rather than including messages on the form to prompt them to inform their clients.

Commercial conveyancing solicitors mentioned that their clients often consult tax advisors and are already aware of SDLT reliefs that apply to them, especially for repeat transactions.

“More often than not, the client will take an accountant’s advice and they’ll be aware of what reliefs are open to them, especially if it’s quite a substantial amount that they expect to pay.” (Commercial conveyancing solicitor, more than 10 years of experience)

As discussed above in section 3.3.3, solicitors expressed the importance of messages being relevant and specific to the transaction in order for them to be helpful. Solicitors felt that generic messages included on every SDLT form, and in numerous places in the form, may become redundant and decrease the likelihood of being read. Commercial conveyancing solicitors were more likely to find these messages relevant to their work. They explained their transactions often involve Group Relief, while residential conveyancing solicitors said their transactions are often quite straightforward and therefore do not typically involve consideration of Multiple Dwellings relief.

It was also pointed out that including messaging only on certain reliefs and not others (for example on just Group Relief) could lead to confusion, particularly for less experienced solicitors. For example, they might miss opportunities to claim other reliefs not mentioned in the message or think a relief applies when it does not. Therefore, messages should be triggered by specific details of the transaction, for example, where the purchaser is a company.

3.3.4 Views on formatting, tone and visual aspects

Conveyancing solicitors emphasised that the messages need to stand out as much as possible. This should be a priority to ensure that messages would be noticed and read when completing the forms at speed. Factors such as font colour, HMRC branding, tone and formatting are discussed below.

Message and font colour

Solicitors generally felt the messages in red with exclamation marks were more likely to capture their attention and appeared as important.

“If it [relief] does slip your mind, that message would definitely remind you. It’s bold, it’s in red, it’s got the exclamation mark, which brings it to your attention. I don’t think you can miss that.” (Residential and commercial conveyancing solicitor, less than 10 years of experience)

However, others considered the boldness of the message to indicate wrongdoing on their part. There was a suggestion that green messages, instead of red, could be more appropriate for indicating that claiming relief is a positive action. Participants raised the risk, despite red formatting, that the messages may still not stand out against other error messages already included in the form. One suggestion to address this was requiring a box to be ticked, indicating the message had been read, in order continue filling in the form.

HMRC branding

Solicitors felt that the message including HMRC branding would blend into the form and not be noticed.

“It kind of looks just like a border of the website, so I probably wouldn’t read it.” (Residential conveyancing solicitor, less than 10 years of experience)

While solicitors who used the GOV.UK platform did not think the HMRC logo was necessary to include in the messages, solicitors using private platforms found the logo helpful. The reason for this was because it let them know that the messaging came from HMRC. While not tested by interviews stimuli, conveyancing solicitors using private platforms suggested including the HMRC logo into the red messages, describing this as “eye-striking”.

Tone and language

Solicitors described the messages as succinct and found them straightforward to understand. Generally, participants preferred messages referring to the specific tax reliefs (see section 1.3.1 conveyancing solicitors examples 2 and 3) as they were perceived as more informative. However, this applied only if the messages appeared for the relevant transaction, for example, where the purchaser was a company for the purposes of Group Relief. If the specific relief message appeared for every transaction, this could lead to confusion by indicating that it was the only relief available or lose its impact through over-use. This is discussed in more detail above in section 3.3.3.

Despite this, solicitors felt that the general message (see section 1.3.1, conveyancing solicitors example 1) was more direct at indicating an action may be needed, by emphasising that it is the purchaser’s choice whether to claim it. It was suggested that the messaging could be more explicit about telling solicitors what action they need to take.

“If people aren’t doing that [informing their clients about relief], maybe then simply just saying, ‘We advise you pass this information to your clients,’ spelling it out. Even though the popup message says something, it doesn’t actually say you should pass this information to your clients, it’s just giving a consideration.” (Residential and commercial conveyancing solicitor, less than 10 years of experience)

Formatting

Interviews explored a range of possible formats in which messaging could be delivered to solicitors, including as pop-up messages, webinars or in FAQ pages.  Solicitors generally felt they would be most likely to read messages presented as pop-ups or in textboxes (as shown within the interview stimuli), but they acknowledged several possible issues with these:

• the pop-up messages may potentially be blocked by their firms’ software
• the pop-up messages may cause annoyance for those solicitors who are more experienced with property and land tax reliefs
• the risk of closing pop-ups without reading them and not being able to access the information again later
• the pop-ups may not be helpful for less experienced solicitors completing the forms, as they already have so many internet browser tabs open whilst completing them

It was suggested that these issues could be overcome by including messaging immediately after login on GOV.UK or private platforms, reminders before submission, or a tick box to say the message has been read. More experienced solicitors noted these options could be particularly helpful for less experienced staff, to whom completion of the forms in often delegated. Presenting the messaging in this way might encourage them to check the message with a senior solicitor, thereby increasing the likelihood it is passed on to the client.

Solicitors explained that, although helpful, they would be unlikely to read messages on FAQ pages or watch a webinar. This was because they would have to specifically look for this content and spend additional time reading or watching it.

“Solicitors are so busy. We don’t have time to watch a whole seminar for something like this. FAQ, there could be 200 questions. It’s just a waste of time.” (Commercial conveyancing solicitor, less than 10 years of experience)

More experienced solicitors mentioned the potential benefit of a combination of pop-up messages, FAQs and webinars, especially for new solicitors.

If including messaging with the SDLT form, presenting it alongside questions on reliefs (as in the stimuli) was thought the most likely format to be noticed and read by solicitors. However, participants were most interested in ways it could be received earlier in the conveyancing process. They offered a number of possible options for this, including:

• sending letters or emails to firms. However, solicitors suggested they would be unlikely to engage with these
• HMRC posting messaging on LinkedIn with links to short guidance webinars
• messaging being included alongside the SDLT calculator on the GOV.UK webpage, as well as the calculator itself being improved to accommodate more complex transactions. This was the most popular response among participants and the most likely to be engaged with.

3.4 Implications for getting tax right, at the right time

This section discusses the implications of messaging for whether conveyancing solicitors said they would pass messages on to their clients. The following paragraphs cover many of the same themes discussed elsewhere in the report, but with a focus on the key features of messages that determined their impact and related considerations for HMRC.

In general, conveyancing solicitors said they would pass messages on. However, in order for this to happen, a number of barriers had to be overcome. These barriers are explored in detail below. It should be noted that, as with HMRC customers, there are limits to the research method used. How conveyancing solicitors thought they would respond can differ from how they would actually respond when faced with a real situation. As such, this section should again be read as a summary of the likely or potential impacts of messages, rather than as conclusive evidence that a certain behaviour would or would not occur. 

Timing of the message in the conveyancing process

It was acknowledged that including messaging in the SDLT form would be helpful as a final safeguard against error, especially as there is a time gap between initial contact with the client when reliefs are first discussed and submitting the SDLT form. However, conveyancing solicitors felt that the best time to receive messaging on SDLT reliefs was at the outset of the transaction when they were first instructed by their client. As discussed in more detail in section 3.2 above, conveyancing solicitors felt they would be more likely to pass on messages received at an earlier point, as there was a greater opportunity to influence the transaction and/ or the client’s decision whether to proceed differently.

Possible considerations for HMRC

Conveyancing solicitors offered the following suggestions on how messaging could be provided at an earlier point in the conveyancing process:

• send letters to firms, informing them about tax reliefs
• create leaflets around different types of reliefs that conveyancing solicitors can pass on to their clients at the beginning of the transaction alongside any other initial forms
• include messaging on the SDLT calculator on the GOV.UK webpages
• include a requirement to provide messaging to clients within the Conveyancing Quality Scheme (CQS) compliance for both residential and commercial conveyancing, to build in quality assurance at an earlier point
• improve the clarity of the existing HMRC guidance on reliefs. This was thought to be particularly important for conveyancing solicitors who do not have any specialist tax colleagues they can consult or who are newer to conveyancing
• target messaging at accountants who are likely to advise clients in the first instance on whether they are eligible for reliefs

Time constraints

Conveyancing solicitors highlighted how they are often working under significant time constraints. This results in conveyancing solicitors completing SDLT forms at speed. Participants explained that, as a result, they could easily overlook and not read messages. Further, participants explained that they often delegate SDLT completion to more junior colleagues due to time constraints. As described in section 3.2 this adds an additional intermediary between HMRC and the client, which further complicates the likelihood of the message being passed on.

Possible considerations for HMRC

These participant responses gave rise to a number of possible suggestions for HMRC:

• present messaging as part of the SDLT form rather than requiring conveyancing solicitors to take time to look for or visit another webpage
• ensure links on the messages produce guidance in a user-friendly format that can be easily shared with the client (such as in PDF)
• provide messages at the outset of the transaction to avoid any significant delays from changes later on
• use a format where messages are more likely to be noticed by less experienced colleagues and then raised with the conveyancing solicitors, thereby increasing the likelihood they will be passed on to clients. For example, messaging in red at the beginning of the form which requires some actions to be taken (such as ticking a box) before they can continue

Formatting of the form

Participants explained there was a risk that they would overlook messages among other warnings and information already included in the SLDT form.

Possible considerations for HMRC

This reflection gave rise to the following considerations for HMRC when implementing future educational messaging:

• include messaging in a format that is different from, and stands out against, other warning and information messages, including using red colouring, exclamation marks and different fonts. Avoid using the HMRC teal and white colours
• while the HMRC logo was deemed unnecessary by conveyancing solicitors who submit forms through GOV.UK, conveyancing solicitors using private platforms found the logo useful and eye-catching
• require conveyancing solicitors to take some action in response to the message, to confirm that it had been read and considered before they can continue, such as clicking a tick box

Whether the conveyancing solicitor considers the message as relevant to the transaction

Given the potential disruption to the transaction at the stage of the SDLT form completion, conveyancing solicitors suggested they would only pass on messaging to their client if they first assessed it to be relevant and applicable.

Possible considerations for HMRC

The following were suggested by participants as possible considerations for HMRC to overcome this barrier:

• tailor messages to the specific transaction, rather than presenting them on every form. For example, including messaging on Group Relief only where the purchaser is a company
• messages should emphasise that it is the purchaser’s choice whether to claim relief and that it could have financial implications for the transaction. This framing could create a clearer incentive to act
• ensure messaging is fully integrated across public and private platforms with links to HMRC guidance as the trusted source for information on reliefs

Appendix A. Achieved sample

Achieved sample details

Table 1: Final achieved sample - HMRC Customers

Characteristic		Quota	Interviews
Gender
Male		Min 20	19
Female		Min 20	26
Age
18 - 34		Min 15	14
35 - 49		Min 15	17
50+		Min 15	14
Customer type
Those who sell online		Min 15	15
	Type of seller
	Individual (not as a main source of income)	Min 4	5
	Individual (as a main source of income)	Min 4	4
	Business	Min 4	6
	Income type
	Primary	Min 4	6
	Secondary	Min 4	4
Those who let online		Min 15	15
Businesses who use a personal online bank account		Min 15	15
Total		45	45

Table 2: Final achieved sample - Conveyancing solicitors

Characteristic	Quota	Interviews
Gender
Male	Min 8	6
Female	Min 8	14
Age
18 - 34	NA	11
35 - 49	NA	8
50+	NA	1
Type of conveyancing
Residential	NA	5
Commercial	NA	6
Both	NA	9
Length of time in conveyancing
Less than 2 years	NA	2
2 - 5 years	NA	3
5 - 10 years	NA	6
More than 10 years	NA	9
Total	20	20