Research and analysis

HMRC stakeholder engagement research 2020 to 2021

Published 4 November 2021

Research conducted by Yonder Consulting among HMRC stakeholders in 2020 to 2021. Prepared by Yonder Consulting (Owen Thomas, Amelia Evans and Cecilia Sandell) for HMRC Communications.

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

1. Introduction

1.1 Background

HM Revenue and Customs (HMRC) has commissioned stakeholder research each year since 2012, with the exclusion of 2019 to 2020. The research provides insights into the views of main stakeholder groups, identifies trends and changes in attitudes, and informs improvements to the way HMRC engages with these audiences in order to better fulfil its strategic objectives.

1.2 Research aims

Yonder was commissioned by HMRC to undertake research among its stakeholders to:

• understand stakeholders’ general perceptions of HMRC: favourability, trust, advocacy, and change over time

• gauge awareness of HMRC and stakeholders’ knowledge about HMRC’s remit, vision and priorities

• explore HMRC’s perceived performance and to what extent stakeholders feel HMRC is collecting revenue due, transforming tax and delivering a more professional, efficient and engaged organisation

• assess HMRC’s communication and engagement with stakeholders

1.3 Method

Yonder conducted two phases of research on behalf of HMRC, consisting of an initial quantitative phase, followed by a qualitative phase.

1.3.1 Sample

The sample of Parliamentarians and devolved administrations was drawn from a complete list of current Members of Parliament, Members of the Scottish Parliament, Members of the National Assembly for Wales and Members of the Legislative Assembly in Northern Ireland. The remaining sample of business, customs, voluntary and community sector, agents, media and other stakeholders was drawn from a list of important stakeholders identified by HMRC.

Quantitative research: Yonder used a questionnaire agreed by HMRC to conduct an online survey, with 270 HMRC stakeholders. All respondents came from a longlist of stakeholders identified by HMRC.

Qualitative research: Yonder conducted 55 qualitative in-depth interviews by telephone, lasting between 20 and 45 minutes.

The sample breakdown was as follows:

Stakeholder group/ Sample size	Quantitative	Qualitative
Parliamentarians and devolved administrations	59 (33 MPs, 8 MSPs, 9 MSs, 6 MLAs and 3 Peers)	10
Business	78	11
Customs	23	7
Voluntary and Community Sector (VCS)	20	7
Agents	48	12
Media	8	4
Other	35	6
Total sample size	270	55

Please note that a small number of research participants appeared in more than one stakeholder group; however, no stakeholder is counted twice in any figures presented in this report.

The qualitative research is intended to explore and understand the range of perceptions and attitudes towards HMRC; it is not intended to give any indication of the prevalence of these beliefs across the population as a whole.

1.3.2 Fieldwork

Quantitative fieldwork ran from 15 December 2020 until 18 February 2021.
Qualitative interviews took place between 25 January 2021 and 17 March 2021.

2. Findings

2.1 Overall perceptions

HMRC’s stakeholders believed that the department performed well against the main performance indicators. Trust in HMRC was high among stakeholders, while favourability towards HMRC and perceptions of HMRC’s performance as the UK’s tax authority have risen year-on-year. Advocacy also improved and stakeholders were more likely to speak highly of HMRC than to criticise the organisation.

Stakeholders’ familiarity with HMRC’s work continued to be high, and knowledge was detailed, particularly when it came to stakeholders’ area of professional focus. Stakeholders’ knowledge and understanding were often built upon long-lasting relationships and many had constant or regular contact with the department. Knowledge was often centred on stakeholders’ specific sector or area of focus, meaning some lacked an understanding of the broader organisation or how various parts of the department work together. Understanding of HMRC’s broader vision and priorities was not as strong – but this was very rarely a cause for concern for stakeholders, who were generally well-informed about their particular areas of interest.

Favourability towards HMRC was at its highest point since research began in 2012. All groups of stakeholders were more favourable than unfavourable towards HMRC. Satisfaction with working relationship had the biggest impact on favourability – and was a strength for HMRC. Perceptions that HMRC was doing a good job for the UK taxpayer, that it was improving customer service and that it could be relied upon to carry out its duties competently and professionally, also had an impact on favourability.

Most stakeholders agreed that HMRC is an organisation they can trust and rely on. Perceptions that HMRC is doing a good job for the UK taxpayer, looking after customer’s interests and treating customers fairly drives trust towards the department.

Advocacy towards HMRC was up since 2018 and was now at its highest point since research started in 2012; only a few were critics. The stakeholders who said they would speak well of HMRC tended to have a good working relationship with the department and saw HMRC as an organisation that was working towards the same ends as themselves. They therefore wanted the department to succeed and acknowledged areas where this was the case. Nevertheless, they were also able to hold HMRC to account and be critical if required.

2.2 HMRC’s performance

Stakeholders believed HMRC was broadly performing well within what they perceived to be a challenging climate, highlighting the COVID-19 pandemic and perceptions of limited resources as particular challenges. As in previous years, HMRC was described as a competent tax collection authority, with knowledgeable staff, that performed well given perceived limited resources. Those who thought HMRC was not performing well as the UK’s tax authority most commonly attributed this to poor responsiveness and poor customer service.

Satisfaction with leadership and management and technical expertise was high. Most stakeholders rated the quality of HMRC’s leadership and management as either ‘very’ or ‘fairly’ good. Stakeholders thought HMRC’s leadership and management team were professional and committed. Similarly, most stakeholders were satisfied with the level of technical expertise of HMRC staff. They generally felt their queries were answered in an accurate and considered manner.

Customer service remained a perceived weakness, despite some noting recent improvements. They believed the biggest issue facing HMRC’s customer service was phone delays, and most had first- or second-hand experience of long wait times while trying to reach the customer service team via phone. Once through, though, most stakeholders believed HMRC provided a reasonable service.

Most praised HMRC’s handling of the COVID-19 pandemic, but it was rarely part of their dealings and therefore did not fundamentally change their experience with or perceptions of HMRC.

2.3 HMRC’s objectives

On the department’s strategic objectives since 2015, stakeholders particularly praised HMRC’s work on combatting evasion and avoidance. Stakeholders recognised the work HMRC has put into closing the tax gap (the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid), but stressed the importance of continued work on evasion – especially that of larger multi-national corporations. They believed this would improve not only the tax gap but also public perceptions of HMRC.

Stakeholders thought the department’s new strategic objectives around collecting the right tax and paying out the right financial support, making it easy to get tax right and hard to bend or break the rules, and supporting wider government economic aims through a resilient and agile tax administration system were timely and sensible objectives that HMRC performs well on. Stakeholders especially mentioned the collection of the right tax and the payment of the right financial support as strengths.

2.4 Engagement

Satisfaction with working relationship among HMRC’s stakeholders was high – and was a core driver of favourability. There was widespread praise of the professionalism of HMRC staff and most were satisfied with the technical expertise of staff.

Stakeholders praised the frequency and number of channels of communication. They were particularly impressed with how HMRC has adapted during the COVID-19 pandemic, delivering high quality communication and engagement while working remotely. However, one common request was for earlier involvement on policy changes – being warned well in advance and preferably being able to feed into such processes early.

Stakeholders were also overwhelmingly positive towards the engagement they had with HMRC. The belief that HMRC listened to and understood their views remained strong, and agreement that HMRC responded to their views continued to grow year-on-year.

Media scrutiny continued to be an important challenge for HMRC. Stakeholders recalled more negative stories than positive in the media. Nevertheless, many stakeholders thought news stories had become more positive in the last 12 months, but they were split on whether media portrayal was fair or unfair.