Research and analysis

Pay-As-You-Earn (PAYE) Refresh Research Report

Mixed methods research exploring customer reactions to the introduction of ‘In-year coding’ to help inform the design of the system and related communications.

From:
HM Revenue & Customs
Published
23 July 2018

Documents

Pay-As-You-Earn (PAYE) Refresh Research Report

Ref: HMRC Research Report 505

PDF, 2.52 MB, 89 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

On 2nd July 2017, HMRC introduced a new system that uses information from the customer, as well as Real-Time Information provided by employers and pension providers, to review customers’ liabilities more frequently ‘in-year’ to adjust tax codes throughout the year. This ‘In year coding’ will increase the likelihood of a customer ending the year not owing, or being owed tax.

The purpose of this mixed methods research was to understand how HMRC customers might respond to In-Year coding, to help inform the design of this new system and related communications to the customer group most likely to be affected by the changes. It was carried out before In-Year Coding was delivered and therefore customers were responding to hypothetical questions.

The study consisted of four mini group discussions, a survey of 565 PAYE customers and 10 in-depth follow up interviews.

The findings in this report cover:

  • levels of understanding of the PAYE system and how over or underpayments may arise
  • expected responses to the new customer journey
  • expected impact of the new system on ability to manage finances
  • customer reactions to proposed communications
  • customer reactions to the potential use of the Personal Tax Account
Published 23 July 2018