Research and analysis

HMRC Research Future Strategy

Published 7 August 2025

1. Introduction

This report was prepared by the HMRC Research Future Strategy project, which aims to enhance the use of HM Revenue and Customs (HMRC) data for research purposes. Using funding from Administrative Data Research (ADR) UK, HMRC has explored ways to widen external access to its data aligning with both ADR UK and HMRC’s strategic priorities. The report has been authored by HMRC’s Knowledge, Analysis and Intelligence Directorate (KAI), under the guidance of the project’s Steering Group.

HMRC is the UK’s tax, payments and customs authority, collecting the money that pays for the UK’s public services. As such, it is responsible for administering the UK tax and customs system and ensuring compliance with tax legislation. Note: when this report refers to ‘tax’, it refers to both tax and customs, covering policy and administration issues.

HMRC’s work creates vast amounts of administrative data, which HMRC uses to provide and deliver customer services administer the tax system, and close the tax gap. The data is also used by HMRC to provide analysis and research to inform the evidence base for tax administration. Through its partnership arrangements with HM Treasury (HMT) and the Office for Budget Responsibility (OBR), HMRC’s analysis also supports tax policy development and tax forecasting.

KAI is the central analytical directorate for HMRC, providing analysis and research on all areas of the tax system to HMRC and HMT. The directorate is responsible for producing a wide range of official statistics, analytical outputs, and research. KAI is also responsible for facilitating links between HMRC and external researchers managing HMRC’s Datalab, which provides access to anonymised (see Glossary for definition) HMRC data to external researchers.

ADR UK is a national initiative funded by the Economic and Social Research Council - UKRI (ESRC) that enables secure access to de-identified public sector data for research purposes. By linking data from various government departments, ADR UK supports high-quality, evidence-based research aimed at informing public policy and improving societal outcomes. The programme fosters collaboration between government and academia, ensuring that insights derived from administrative data contribute meaningfully to addressing key social and economic challenges.

2. Executive summary

To develop the evidence base needed to meet its strategic objectives and deliver ministerial priorities (details in Annex A), HMRC needs to broaden external access to its data. The data needs to be made easier for external researchers to understand and use, and HMRC’s engagement with researchers and research institutions should be improved. Increased access to HMRC data could support more high quality research into tax and to support the design and delivery of cross-government missions.

HMRC is committed to making its data more widely accessible to external researchers and enabling its linking with data sets from other government departments and other official agencies (see Glossary for definition). The department has recently entered into a strategic partnership with ADR UK to support their mission to enable evidence-based policymaking through the use of administrative data.

Current restrictions to data access can limit researchers’ use of HMRC’s data, and better engagement between HMRC and external researchers is needed to deliver more research to inform UK policy. User research conducted by the project identified that researchers do value their current access to HMRC data, and the support provided by KAI specialists. However, they see the following major barriers to using HMRC data effectively in their research:

• access to HMRC data via Datalab is currently limited to a physical location in Stratford, London – the impact of this is compounded by the fact that HMRC currently only provides limited data to external Trusted Research Environments (TREs) provided by the Office for National Statistics (ONS)
• some users reported limited engagement with HMRC on research priorities and on Datalab processes – they were concerned they are not fully briefed on Datalab operations and data
• some HMRC data sets are well documented, but there are gaps – in addition, more could be done to facilitate linking HMRC data to external data sets and streamline the process of accessing data

Three sets of recommended options to address these barriers were developed by the project, under the following headings:

• data access (the technology and platforms that store the data)
• engagement activities (HMRC and external researchers working together)
• improved data (optimising data available and supporting documentation)

Details of these options are given in section 4.

The implementation of these recommendations will require investment in HMRC’s capabilities and needs to be balanced against HMRC’s other priorities. HMRC will also work in their strategic partnership with ADR UK to plan implementation of the improvements and funding arrangements.

Recommendations

HMRC should improve access to its data through a hybrid approach of improvements to Datalab and increased access to tax data in ONS TREs. HMRC should also review the permitted scope of research projects making use of HMRC’s tax data. For the majority of research, especially where tax data needs to be linked to other government departments’ data sets, TREs would be the appropriate environment. For more specific tax-focused research where supplementary, ‘bespoke’ data sets and specialist HMRC support is required, access would be via Datalab.

HMRC should work with ADR UK to improve both its data and engagement. HMRC should implement foundational steps using existing capabilities, and work with ADR UK on a business case for funding of longer term sustainable improvements identified in this report.

HMRC should continue the work already started on its ‘Datalab Modernisation Programme’ to streamline processes and contractual arrangements for existing Datalab users, including a review of the current contracts. References to ‘modernisation’ throughout the report refer specifically to improvements to the current physical facility only.

Actions to implement recommendations

Phase 1 (commencing 2025 to March 2026)

Data access

• preparing core tax data sets for research use in both Datalab and ONS Trusted Research Environments (TREs)
• scoping the design for potential secure, cloud-based remote access to Datalab, assessing feasibility, identifying constraints and requirements

Engagement activities

• developing an external engagement strategy for a more focused engagement with external researchers
• identifying improvements to Datalab processes that increase efficiency and streamline administrative processes for researchers
• refreshing contractual arrangements for researchers accessing HMRC data

Improved data

• identifying gaps and inconsistencies in current data cataloguing and documentation
• enhancing data cataloguing, consistency, and usability, using ADR UK guidance
• exploring and prioritising data linkage opportunities

General

• working with ADR UK, prepare a comprehensive business case to secure further funding for implementing longer term sustainable improvements identified in this report

Phase 2 (from April 2026)

Data access

• migrating curated, research-ready data sets to Datalab and ONS TREs
• if feasible, implementing the preferred solution for secure cloud-based remote access to Datalab
• reviewing the feasibility and benefits of obtaining Digital Economy Act (DEA) accreditation for Datalab – implementing necessary changes if pursued

Engagement activities

• delivering the new external engagement strategy

Improved data

• comprehensive documentation of all HMRC data used by researchers
• maintaining data sets with appropriate update schedules

3. Background

HMRC’s current arrangements for research and data access

HMRC’s KAI directorate supplies much of the analysis on which HMRC’s strategic decisions rest. Because HMRC holds the data pertaining to the tax system, KAI also provides much of the tax policy analysis on which HMT and HMRC officials, as well as HMT ministers and the OBR, rely for fiscal events.

HMRC and HMT work together to deliver effective tax and welfare policy under a ‘Policy Partnership’ arrangement. The Policy Partnership involves HMRC’s KAI and policy teams and HMT groups responsible for tax and welfare policy. HMT leads on strategic work and policy development, while HMRC focuses on policy maintenance and delivery. For more details on ministerial priorities and HMRC’s strategic objectives, see Annex A.

Most evidence needed to inform HMRC and HMT decision-making is provided through internal analysis and synthesis of existing data and evidence. However, KAI also engages with academia and independent research institutions and makes its data available for external analysis and research. HMRC’s data is also an incredibly valuable source of evidence for analysis and research in other policy areas and cross-cutting government missions.

The existing arrangements for HMRC to engage directly with external researchers and analysts on tax research can be grouped into four main approaches.

Research projects accessing de-identified HMRC administrative and survey data in HMRC’s Datalab, a secure setting located in HMRC’s Stratford regional office which has been in place since 2011. The facility allows accredited researchers to suggest innovative and practical research projects to HMRC that support and fulfil functions under the Commissioners for Revenue and Customs Act (CRCA) 2005. If approved, these are generally required to publish a high-quality final report in academic journals, which can be used by HMRC, HMT, the researcher community, and the general public. All projects are independent and not commissioned by HMRC. Accessing Datalab is ‘in person only’ which means users have to be on site in one HMRC location in London during set hours on set days to access data.

External researchers are also able to access some of HMRC’s de-identified data via TREs such as the ONS, or from other government departments using HMRC data shared with them. Some of the research done using this data is for tax questions, but not all – most uses non-tax HMRC data (see below):

ONS makes data available to researchers via access points at ONS sites (SafeRooms)

Additionally, researchers may access the data via SafePods (available at approved research institutions across the UK) and Assured Organisational Connectivity (AOC) (access from researchers’ employers’ premises if the organisation has achieved AOC status).

ONS provides external access to data primarily through two TREs

The ONS Secure Research Service (SRS) offers curated, research-ready data sets to accredited researchers. These data sets are prepared to support high-quality, policy-relevant research and are accessible under strict governance and security protocols. The ONS Integrated Data Service (IDS) is primarily used as an internal ONS environment but has been made available to a limited number of external users under DEA gateway, though it is not currently accepting new applications for external research. It provides access to raw, uncurated data and a suite of advanced analytical tools that are typically not available in standard research environments. Access to either environment is managed directly by the ONS. For the purposes of this report, both environments will be referred to as ONS TREs.

HMRC data is already being used in several established linked research data sets

While these data sets – such as Longitudinal Education Outcomes (LEO) and Responsive Administrative Data Infrastructure (RAPID) – do not focus on tax research, they leverage HMRC data to support analysis in areas such as earnings, education, and employment outcomes. This demonstrates the broader value of HMRC data in informing social and economic research beyond its original administrative purpose.

HMRC has a funded External Research Programme, which commissions research work to be conducted by external providers recruited through fair and open competition to address critical gaps that cannot be filled within the department. These research projects, largely social research, provide new insights into business and customer impacts of tax policy and administration. They also identify where the department can develop new policies to increase yield, improve efficiency and value for money, and make things easier for our customers. HMRC’s research programme also currently includes a series of econometric evaluations of tax reliefs.

HMRC also have contractual arrangements with academic institutions, for example, the University of Westminster provides econometric advice. In addition, KAI collaborates with researchers from organisations such as the Institute for Fiscal Studies (IFS), the London School of Economics, the University of Oxford and Centre for the Analysis of Taxation (CenTax) on an ad hoc basis, drawing on their expertise for research and guidance.

Strategic aims of this project

HMRC’s evidence base is a vital tool for strategic decision-making to improve tax policy and administration. Academic and other external research institutions have a critical role in helping to build this evidence base, by providing independent, rigorously considered insights. This complements the skills of HMRC analysts, who are also likely to face competing demands and priorities on their time. HMRC is therefore eager to improve its collaboration with external researchers and facilitate their access to relevant data.

HMRC and ADR UK have agreed to work together in a strategic partnership. HMRC’s ambition is to make its data more widely available to external researchers and enable it to be linked to other government data. This directly supports the mission of ADR UK, which is to enable evidence-based policymaking through the use of administrative data for the public good. ADR UK agreed to provide initial project funding for HMRC to work in collaboration with them on this project.

The vast amounts of data generated in modern tax administration represent a huge asset for independent research. When HMRC data is securely linked with other government department data sets this offers rich insights for research and analysis that can help inform cross-government priorities and drivers of economic growth.

External users of HMRC’s data and researchers interested in tax policy and administration questions agree that more could be done to promote positive engagement between themselves and HMRC. The project aims to identify ways to broaden and develop external research in the areas of tax policy and administration, so as to strengthen the strategic evidence base for tax.

Facilitating greater linking to other government department data sets enabling the use of HMRC’s data in non-tax specific research will also contribute to more informed policy-making decisions across government. The existing administrative data held by HMRC can meet many of these demands without the need for additional data collection. The impacts should therefore extend beyond tax policy and tax administration into, for example, research supporting economic growth and analysis of trends in health and justice.

The options identified in section 4 are designed to enable increased capacity and capability outcomes. Their implementation will need to be followed up with continuous future improvements in engagement, data provisioning and access so as to maintain positive long term changes. HMRC will also need to ensure that all researchers have fair and equitable opportunities to access data and resources.

Additional aims of this project

Government has made substantial investments in building TREs for external researchers to use to access government data – mainly the ONS TREs. Making data available to external researchers via such infrastructure is established practice for other policy areas and external researchers are therefore experienced in using TREs. HMRC has begun some work with the ONS to establish a framework for facilitating HMRC data shares via their TRE offer and to increase the coverage of HMRC data in TREs. This project seeks to build on that initial work.

Making more HMRC data available via TREs and enabling remote access, via the Cloud to Datalab would facilitate greater secure data access by researchers without the need for more physical locations for data access.

Better engagement could build goodwill and more targeted and collaborative working relationships between the external research community, particularly in the tax arena, and HMRC as well as support for researchers. This will lead to cost savings and efficiencies for HMRC by focusing the availability of data sets on areas that are a strategic priority and enabling multiple uses of data sets.

A key indirect benefit or outcome expected by HMRC is an increased number of published high quality research papers that use linked administrative data, benefiting the wider research community and government.

Broader indirect benefits include improved data quality for HMRC’s internal analysis, other government departments and external researchers. Increased use of TREs would allow the provision of data, and its access would be more sustainable, enhancing the overall quality and robustness of the data available for research.

Project approach

As part of the HMRC ADR UK project, HMRC conducted user research to identify barriers to effective engagement with external researchers using HMRC data for tax-related research. Insights from this work informed the development of a new evaluation framework aimed at improving research outcomes and enhancing policy and decision-making impacts. The framework draws on HMRC’s ongoing collaboration with researchers, KAI’s experience with data sharing (including through Datalab), and targeted user research involving both current Datalab users and non-users. These findings have directly shaped the recommendations in the report.

The project was overseen by a project Steering Group, which reviewed and shaped the options presented below. Annex B provides further details on the group’s membership and remit. This group included senior representatives from ADR UK and the Institute for Fiscal Studies (IFS), as well as senior officials from HMRC and HMT with responsibility for strategic analysis and data sharing policy. HMRC is very grateful for the advice and support of the Steering Group members throughout this project.

The recommended options are expected to strengthen the strategic evidence base, enabling researchers to generate more robust insights that can inform and support evidence led policy and decision making across government. Other strategic impacts also identified include sustainability (i.e. longevity through future proofing of affordable platforms), transparency, equitable access and service predictability.

4. Overview of the options considered

This section presents the options for improvements identified by the project and agreed with the Steering Group. The options considered are grouped into the following improvements areas which cover the objectives set out for the project.

• data access – the technology and platforms that store the data
• engagement activities – how HMRC and external researchers work together
• improved data – improving the data made available and the documentation supporting it

Datalab Modernisation Programme: the above options relate to accessing HMRC data via both Datalab and TREs, as well as broader engagement with external researchers. On the project Steering Group’s recommendation, HMRC has already started work on a Datalab Modernisation Programme to streamline processes and contractual arrangements for existing Datalab users. This early work to improve Datalab will continue as part of Phase 1 of the implementation of this report’s recommendations.

Data access

For access options, consideration was given to the infrastructure available outside HMRC and making use of existing safe TREs which all follow the ‘5 safes’ principles to safeguard projects, data, people, settings and outputs (Datalab uses the same principles). Two broad options were considered regarding the infrastructure platforms and how the data is stored and accessed.

• transition HMRC’s data provisioning service for researchers towards exclusively using ONS TREs (including SafePods and AOC access), decommissioning the Datalab as existing projects close
• increasing the number and quality of HMRC data sets made available to external researchers via TREs but maintaining access to HMRC data for external research into tax policy and administration questions via Datalab – within this option, explore using Cloud IT to enable secure remote access by external researchers to HMRC data held in Datalab

The second option (a hybrid model) was favoured by the Steering Group as it offers a more balanced approach. In this model, research requiring only core tax data sets that can be linked to other government data would take place in ONS TREs. This is most likely to be used by researchers engaged in research beyond tax policy and administration. Research focused on tax questions, requiring more complex tax data and not requiring linked other government data would be supported in Datalab.

Moving core HMRC data sets into a TRE can significantly broaden access and benefit a greater number of researchers interested in using tax data in other research areas beyond tax policy and administration. However, research focused specifically on tax often requires supplementary HMRC data sets in addition to such core data, tailored to individual research projects. The supplementary data can be very complex. This type of research is felt to be better suited to HMRC Datalab, where it can be closely supported by HMRC data specialists and KAI subject matter experts.

In addition, new data sets being made available will need preparation before they can be made accessible in a research ready format in a TRE, including appropriate documentation. Maintaining Datalab can potentially support this process by offering a collaborative environment where KAI can engage directly with researchers to interpret and refine new data sets.

HMRC will also review whether, and how best, to enable Datalab to acquire DEA accreditation. This has been moved to a longer term ambition for HMRC, due to the resource requirements and higher competing priorities for KAI.

The option of creating further, physical Datalab facilities in other parts of the UK was also considered. However, this was ruled out on grounds of cost, time needed for implementation and only limited benefits, especially set against an alternative of allowing secure remote access, via the Cloud to data held in Datalab.

The costs of delivery of new technology and software for data access on the scale needed for HMRC’s data can be considerable. The curation of new data sets and migration to new platforms will also incur significant costs for HMRC. HMRC has already started initial work to implement the new hybrid model and will continue this work as part of Phase 1 of the implementation. Implementation of more substantive changes will require investment and will take place in Phase 2.

Engagement activities

Engagement options cover the actions that HMRC could take to establish collaborative ways of working together with external researchers, to strengthen the evidence base for tax. HMRC also intends to use its Areas of Research Interest (ARI) publication and other means to help establish an active community of researchers interested in tax.

Options to improve HMRC’s engagement with external researchers considered by the project include:

• setting up a process by which external researchers could be seconded into HMRC to work on specific projects over short time spans
• introducing a seminar series where researchers and HMRC experts present on relevant research to their peers
• workshops for mixed groups of external researchers and HMRC/HMT experts to discuss specific aspects of tax research identified in the ARI or through research findings – the attendees could include HMRC and HMT policy professionals and data specialists
• a methods advisory group (MAG) to help ensure that HMRC analysts use the latest analytical methods in their work

While these options aim to achieve a step change in how well HMRC works with external researchers, they require less additional funding than most of the data options. HMRC will therefore take these forward in Phase 1 of their implementation of the project recommendations.

For this greater engagement to lead to a sustainable increase in external research outputs, HMRC will need to increase and broaden access to its data by researchers. This creates a dependency on the implementation of the data options considered by the project – particularly the greater use of ONS TREs – in phase 2 of implementation.

Improved data

Data improvements include supporting information made available to researchers (e.g. data catalogues, data dictionaries and meta data). Such documentation can help them understand, and use appropriately, the data made available by HMRC. This will also help them to shape better project proposals and contribute to improved results that strengthen the evidence base. This work will need to be supported by the relevant KAI subject matter experts.

Options considered by the project include:

• developing HMRC data catalogues for external researchers in line with ADR UK documentation guidance
• developing HMRC’s data documentation (e.g. data dictionaries, useful Q and A on data quality and limitations) for external researchers in line with ADR UK documentation guidance
• creating synthetic and open data sets for researchers to use based on HMRC’s administrative data – this would allow researchers to see what data HMRC holds, and its format, but is not the actual data itself
• creating a ‘sandbox’ IT environment that allows researchers to investigate potentially useful data sets they do not already have access to – this could also allow researchers to write and test code against new data sets to allow them to gain an understanding of the data itself and how it is presented
• creating a set of key linking variables, or ‘spine’, to facilitate linking multiple data sets together
• curating a set of core data sets that are made available for researchers in both Datalab and TREs in anticipation of future demand
• creating new data support teams within KAI to help deliver these options and answer researcher questions on data sets

HMRC agreed with the Steering Group to seek ways to implement all of these options, starting in Phase 1 of implementing the project’s recommendations. HMRC will prioritise those options that can be implemented quickly, without the need for substantial investment. To implement most of these options at scale, investment will be needed, and implementation will take place in Phase 2. Preparing data for linking with other government data and more systemic data documentation will likely require significant IT and software costs, because of the volume and complexity of HMRC data. If researchers’ demands for data and data documentation increase, this will compound the costs. HMRC and ADR UK will work together on this in parallel with the Phase 1 implementation of the quicker options.

5. Discussion of benefits

General approach

HMRC and the Steering Group agreed that a phased or incremental plan is needed to implement the changes. This is based on Steering Group members’ experiences of other government departments and other jurisdictions implementing similar data programmes. This will allow for an earlier realisation of benefits from improvements introduced in succession.

Data access – increased use of TREs

ADR UK’s primary objectives are to make more linked government data available researchers and improve accessibility. The hybrid model supports this by increasing the coverage of HMRC data sets accessible to researchers via TREs. TREs not only provide an increased capacity to support researchers but facilitate the linking of HMRC data to other government data sets for cross-government research.

TREs would also enable a wider range of research projects, because their approval for the use of TREs is conditional on being for the ‘public benefit’ rather than the condition for accessing Datalab, which is that the research benefits one of fulfilling HMRC functions under CRCA 2005. This means a broader scope of projects can use HMRC data than previously allowed.

Access to ONS TREs is managed directly by ONS, who have recently announced an update that one of their TREs, the IDS, will no longer be accepting project applications from external researchers. They also confirmed that the other main TRE, SRS, would be retained indefinitely for external researchers’ access to government administrative data. For the purposes of this report, HMRC will work with ONS to ensure that current and new tax data sets are made available to external researchers on whichever ONS TRE is most appropriate.

Because TREs are located at different sites across the UK, and remote access is enabled by through AOC, increasing the data in TREs would enable access to HMRC data by researchers based in the regions and devolved administrations of the UK. Other government departments including Department for Education (DfE), Ministry of Justice (MOJ) and Department for Work and Pensions (DWP) already use these facilities to make their data available to researchers. HMRC data (earnings from employment and self-employment) is already available in the Longitudinal Educational Outcomes data sets managed by DfE and available in ONS TREs.

TREs offer greater scalability than the Datalab, but the nature and coverage of the data available in each will differ. TREs are designed to support a larger number of users simultaneously, often with standardised, curated data sets that are easier to manage and access remotely. This makes TREs well-suited for scaling up research activity and broadening access to HMRC data. In contrast, the Datalab typically handles more complex, detailed, or sensitive data sets that require bespoke support and closer collaboration with KAI. The capacity for Datalab to scale up is limited due to the intensive resources required.

The hybrid model was found by HMRC and the project Steering Group to best support ministerial priorities and HMRC’s strategic objectives (Annex A). Under this approach, greater use of TREs would not lead to Datalab being decommissioned. It would be retained in order to allow HMRC to continue to offer a more bespoke service to tax specialists via this route. This reflects the strong preferences of existing Datalab users, as expressed in our user research and stakeholder feedback, and by the project Steering Group.

Data access – improving HMRC Datalab

HMRC will undertake a review to explore the potential for DEA accreditation of the Datalab. The potential benefits of DEA accreditation include:

• bringing Datalab in line with ONS TREs
• allowing a wider range of research to be supported by Datalab – the requirement for accessing data under DEA is that the relevant research is for the ‘public benefit’, this is a broader condition than Datalab’s current condition under the Commissioners for Revenue and Customs Act (CRCA) that the research meets one of HMRC’s functions
• enabling Datalab to access other government data that is currently restricted by DEA protocols

The opportunity costs of DEA accreditation will also need to be considered by HMRC. As above the change would widen the range of research that can be supported in Datalab. This would be expected to create a step increase in user demand for the facility, which could not be supported under current capacity constraints and could crowd out tax-focused research.

The physical capacity of the current Datalab in Stratford does limit the number of users that can use the facility at any one time. It is also a severe restraint on its use by researchers not based in or within easy travelling time of London. HMRC will therefore investigate the appropriate IT design for providing secure and safe remote access via the Cloud to Datalab, which would enable a much greater number of researchers to access HMRC data in Datalab at one time.

User research identified benefits that might be expected from HMRC making synthetic data and ‘sandbox’ environments available (within Datalab or outside that environment) to external researchers to facilitate their exploration of new data and analytical techniques. However, these have been moved to a longer term plan. Again, resourcing to do this and legal gateways for such data sharing outside the Datalab environment will need further investigation.

One of the key outcomes identified for Datalab is the accumulation of extensive knowledge over time, derived from analyses conducted by researchers, which will increase subject matter expertise in both the external research community and within HMRC. Ways of facilitating this include fostering partnerships between HMRC and external researchers, academics, and other government departments, enhancing collaboration and knowledge sharing.

Improving HMRC engagement with researchers

HMRC has recently established new teams in KAI to facilitate more engagement with academics. Their work will include providing a gateway for researchers interested in working closely with HMRC, conducting outreach activities, and facilitating more systematic support for external research by HMRC subject matter experts.

HMRC is currently developing its external engagement strategy and vision for the year ahead. The ARI publication is a key enabler for better engagement with researchers. It provides an overview of the department’s strategic interests and insights into where research can have greatest impacts. This will also help researchers to identify areas of interest where HMRC’s support for their research is most likely to be prioritised.

A very successful ARI event was hosted by HMRC in April, which was attended by over 60 researchers and representatives from government departments, research institutions and funding bodies. HMRC plans to build from this encouraging start to organise research roundtables and establish a method advisory group. In addition, the department plans to launch a tax research seminar series, perhaps informed by research findings from Datalab projects. These seminars are intended to complement existing seminar series hosted by external bodies, such as the seminars staged by the IFS. HMRC intends to use these events, and ongoing engagement, to build an active community of researchers in tax.

Modernisation of Datalab processes is needed to make the facility more sustainable, especially if better engagement and other improvements lead to greater demand for its data from researchers. Resourcing and legal access requirements have been identified by users as limiting their current use of Datalab and as barriers to greater use in the future. These will be addressed in the Datalab Modernisation Programme.

HMRC also needs to ensure that its contract arrangements for data access by researchers are fit for purpose and provide sufficient flexibility to allow for different ways of working together. The modernisation programme will review the contracts currently in use and refresh them where appropriate, in consultation with researchers and other stakeholders. This will support more sustainable ways of working, balancing the needs of both HMRC and researchers.

Improving HMRC data for research

Better data cataloguing and documentation for researchers will reduce jargon and provide more background and context for data sets and the variables they contain. It will also facilitate linking between data sets, including guidance on granularity compatibility and common identifier keys. Reflecting the priority of these improvements, additional ADR UK funding for 12 months has been provided to HMRC to establish a new post in KAI to scope and plan work to improve these areas during Phase 1 of implementation.

Better data linkage and the creation of research ready core data sets will be prioritised alongside the implementation of the hybrid model. HMRC will work with researchers to identify which linked data sets are most achievable and can have the greatest impact. Consideration of which core data sets to prioritise will take into account ADR UK priorities, in particular linking feasibility, and HMRC’s ARI.

Glossary

Term	Definition
Accredited Researcher	A researcher who has been granted permission to access sensitive or restricted data for research purposes, typically under specific conditions and frameworks
ADR UK	Administrative Data Research UK is a partnership between government departments, devolved administrations, and academic institutions aimed at transforming the way administrative data is used for research
Anonymised data	Anonymised data refers to information that has been processed to remove or obscure personal identifiers, making it impossible to identify individuals either directly or indirectly. This includes subcategories such as pseudonymised and de-identified data. For the purposes of this report, the term ‘anonymised’ is used as an umbrella term encompassing such variations
AOC	Assured Organisational Connectivity is an agreement between an organisation and the Office for National Statistics (ONS) in the UK. This agreement allows the organisation to securely access the ONS’s Secure Research Service (SRS) from their own premises or home offices
ARI	Areas of Research Interest. These are the key areas of research interest and priorities in tax administration and policy identified by HMRC and HMT to help guide engagement with the research community. These areas are designed to address strategic priorities and improve decision-making
CRCA 2005	Commissioners for Revenue and Customs Act 2005 (CRCA 2005) is the UK law that merged the Inland Revenue and HM Customs and Excise into a single department, HM Revenue and Customs (HMRC) and outlines its functions and powers. The Act provides HMRC with the authority to use information for its functions, while ensuring confidentiality and data protection and the current legal means of how data is made available through the Datalab
Datalab Modernisation Programme	Programme of work to streamline existing Datalab processes and contractual arrangements to the current physical facility. This will address and investigate broader initiatives that will improve the existing Datalab service in the shorter term. This is separate to the planned scoping of remote access, via the Cloud to Datalab
DEA 2017	Digital Economy Act 2017 is a UK law designed to improve digital infrastructure, enhance online safety, and ensure better public services through digital technologies
DEA Accreditation	The process by which organisations and researchers are authorised to access and use data for research purposes under the UK’s Digital Economy Act 2017. The accreditation ensures that data is used responsibly and securely, facilitating the sharing and linking of data sets held by public authorities for research that serves the public good. To become accredited, organisations and researchers must meet specific criteria, including demonstrating robust security measures, ethical standards, and the capability to handle sensitive data
De-identified data	Data from which identifiers and information have been removed to not allow identification of natural persons or businesses. This process ensures privacy and confidentiality whilst allowing the data to be used for research, analysis, and other purposes
‘Five Safes’ framework	Many Trusted Research Environments, including HMRC Datalab, follow the ‘Five Safes’ framework. This is a set of principles (safe people, safe projects, safe settings, safe data and safe outputs) designed to ensure that administrative/survey data can be accessed and used safely and securely for research and analysis
HMRC External Research programme	HMRC’s funded research programme which commissions research work through fair and open competition to external providers to address critical gaps that cannot be filled through internal analysis or synthesis of existing data and evidence
HMRC Datalab (‘Datalab’)	The HMRC Datalab is a secure environment where approved researchers from trusted institutions can access de-identified tax and customs data for research and analysis purposes. This facility supports the National Data Strategy by using data securely to drive innovation and productivity across the UK
IDS	The Integrated Data Service (IDS) is a cross-government initiative led by the Office for National Statistics (ONS) offering a secure multi-Cloud infrastructure to provide secure access to high-quality data, enabling faster and more comprehensive collaborative analysis for the public good. The IDS builds on the foundations of the ONS Secure Research Service (SRS)
Linked data	Joining one or more data set together by a common identifier to create an interconnected data set. Linking data improves data integration, interoperability, and discoverability. It can allow more efficient data analysis and richer, more meaningful insights
National Data Strategy	A framework developed and published in 2020 by the UK government to drive the country’s data economy and ensure public trust in data use
Other government Departments	All government departments, including arm’s-length bodies and other official agencies
ONS SRS	ONS Secure Research Service (SRS) is a facility provided by the Office for National Statistics. It offers accredited researchers secure access to de-identified, unpublished data for research projects that serve the public good
Pseudonymised data	Data that has been processed to replace identifiable information with artificial identifiers or pseudonyms. This allows data to be linked across data sets without revealing the identity of individuals and businesses
Remote access	Allows researchers to securely access and work with data from a location outside of where the data is physically stored. This involves connecting to a secure network or system that hosts the data, typically via the Cloud. This can be achieved through various technologies, such as VPNs (Virtual Private Networks), secure web portals, or specialised software that ensures data security and integrity during access
Safe People	One of the 5 principles of the ‘5 safes’ framework. Safe people is the principle that only authorised and trained individuals can access the data. Researchers are generally required to be accredited.
Safe Data	One of the 5 principles of the ‘5 safes’ framework. Ensuring that the data is de-identified and protected before being made available to researchers
Safe Outputs	One of the 5 principles of the ‘5 safes’ framework. Ensuring that project outputs do not compromise data privacy and are not disclosive
Safe Projects	One of the 5 principles of the ‘5 safes’ framework. Using a governance process to ensure approved research projects have a valid purpose and meet ethical standards
Safe Settings	One of the 5 principles of the ‘5 safes’ framework. Safe setting is providing a secure environment for data access
SafePod	A SafePod is a secure, standardised environment designed to provide researchers with safe access to sensitive data for their projects. SafePods are equipped with secure IT infrastructure, including secure networks and computers, to prevent unauthorised access or data breaches. Physical security measures include controlled access and surveillance. They are generally located in academic and research institutions, and used by TREs, e.g. the ONS SRS.
Sandbox area	A sandbox area is a controlled, isolated IT environment used for testing/experimentation of code and viewing data sets to allow a user to explore the information available.
Strategic data	Data that is specifically prepared and managed to support strategic goals and decision-making processes and may be made available to researchers on a proactive basis in anticipation of demand.
Synthetic data	Synthetic data is artificially generated data that mimics real-world data. It is created using algorithms and simulations that follow the same format and trend of the data it is based on.
Trusted Research Environments (TREs)	TREs are a secure platform/environment designed to provide researchers with access to sensitive data in a safe and controlled manner. TREs enable valuable research while maintaining public trust by safeguarding data privacy and security.

Annex A: Ministerial priorities and strategic objectives for HMRC

The Exchequer Secretary to the Treasury (XST) set out his priorities for the department in a letter dated July 2024. These were to

• improve day-to-day performance
• close the tax gap
• modernise and reform HMRC

In response to this, HMRC published new strategic objectives in April 2025 which aim to build upon these priorities to:

• close the tax gap
• improve day-to-day performance and the overall customer experience
• reform and modernise tax and customs administration
• build a high-performing organisation with a skilled and engaged workforce
• support wider government economic aims through HMRC’s work

Annex B: ADR UK Steering Group

The HMRC-ADR UK project is supported by a Steering Group who use their expertise to

• help influence key decisions to be made in the project
• set the initial direction of the project and challenge direction over the project lifecycle
• suggest project topics and challenge the depth of investigation of different topics, prioritising limited time and resource
• challenge and sign off agreed project recommendations at the end of the project
• use established networks and communities to provide contacts for stakeholders to reach out to for user research

Membership to the Steering Group is as follows:

Member	Organisation	Role
Jane Whittaker	HMRC	HMRC KAI co-director
Mick Thackray	HMRC	HMRC KAI Hub for Evidence, Assurance, Research and Technology deputy director
Rosie French	ADR UK	ADR UK deputy director
Helen Miller	IFS	External Research theme lead
Zoë Nettelfield and Declan Norris	HMRC	HMRC Strategic Data Policy deputy director (job share)
Laura Webster	HMT	HMT Personal Tax, Welfare and Pensions director
Mark Brewin	HMRC	HMRC Data Sharing and Acquisition deputy director