Research with customers who struggle to engage with HMRC communications

Question 1

1.  Executive summary

Accepted Answer

1.1 Background and objectives

Making Tax Digital for Income Tax rules will apply to self employed individuals and landlords whose income is above £50,000 from 2026 and those whose income is above £30,000 from 2027. Making Tax Digital for Income Tax introduces significant changes for customers, including making more frequent updates to HMRC and keeping records digitally.

HMRC communications campaigns will use multiple channels to raise awareness of the change. However, some customers who ignore or struggle to engage with traditional communications from HMRC may not realise that the change is happening and may fail to take action at the appropriate time.

HMRC wanted to understand more about the different barriers that certain customers face which might lead them to ignore or struggle to engage with HMRC’s traditional communications. HMRC also wanted to explore the most effective communication styles, methods and channels to ensure they are made aware of Making Tax Digital for Income Tax and take action. HMRC therefore commissioned Verian (formerly Kantar Public) to carry out qualitative research with this customer group.

1.2 Research approach

HMRC hypothesised that there were 2 groups of unrepresented customers (who do not use tax agents) that should be the focus of this research:

population 1 were customers who find it hard to engage with traditional HMRC communications, but still want to
population 2 were customers who resist engaging with HMRC

A qualitative research approach was taken, enabling these hypotheses, and the needs of these customer groups, to be explored. Qualitative research methods are intended to provide in-depth insights into participants’ experiences and perspectives, but findings should be considered to be illustrative rather than representative.

The research included a short scoping phase followed by 2 phases of primary qualitative research, conducted between 16 February and 3 April 2024:

phase 1 consisted of 30 online interviews with Self Assessment customers who self-defined as finding it hard to engage with HMRC communications (population 1)
phase 2 involved 3 online workshops with a mix of 8 new customers and 9 returning phase 1 participants

The new participants were recruited directly by their peers from phase 1 (using a community-based peer-recruitment approach) and self-defined as being ‘resistant’ to engaging with HMRC (population 2). While the overall sample size was relatively small, as above, it enabled an exploratory approach to be taken and the use of community-based peer recruitment to be piloted.

To help understand the potential barriers to engagement with HMRC, the research used the COM-B behavioural framework as the basis of our recruitment approach and analytical framework. The COM-B model proposes that to engage in a behaviour at any given moment, a person must be physically and psychologically capable (C) and have the opportunity (O) to exhibit the behaviour, as well as the want or need (motivation) to demonstrate the behaviour at that moment (M).

Overall, the sample included a range of customer types, sectors, time trading and income bands (over £30,000). The sample also included a spread of software use, gender, age, and regions. A range of primary barriers to engaging with HMRC was included in the phase 1 sample, including 12 customers with capability barriers, 6 with opportunity barriers and 12 with motivation barriers.

1.3 Key findings

1.3.1 Participants’ financial and tax management processes

Participants were generally confident in their financial management and record keeping processes, describing them as habitual aspects of running their business. In terms of tax knowledge, participants typically reported sufficient awareness and understanding of tax to be able to fulfil their tax obligations. Despite this, tax anxiety was widespread across the sample and associated with a fear of getting things wrong and being penalised. Anxiety was particularly acute among those with lower levels of tax knowledge and those with literacy or numeracy issues, neurodivergence, and physical or mental health problems.

In terms of fulfilling their tax obligations, participants described completing their Self Assessment returns at different times of the year. This was typically either early (in April or May) or just before the deadline (in December or January), with participants preferring to only think about tax for a limited time in the year. Participants were rarely proactive about seeking information, especially those who had been trading for over 5 years. Instead, they typically received information passively through trusted networks, such as friends and family, social media, industry bodies and financial experts including a well-known financial guidance journalist/website. Although not a primary source, participants described using the GOV.UK website as a trusted resource to cross-check information obtained elsewhere.

1.3.2 Barriers to and experiences of engaging with HMRC correspondence and communications

Participants typically reported facing more than one barrier to engaging with HMRC, across a range of capability, opportunity and motivation barriers. The research also identified some customers who were ‘resistant’ to engaging with HMRC, at the same time as facing other barriers.

Participants were asked about their attitudes towards HMRC, with views ranging from neutral, describing HMRC as ‘formal’, to more negative, finding HMRC challenging to deal with, punitive, or hostile. Additionally, some participants struggled to separate their overall views of HMRC from their experiences dealing with HMRC correspondence. As a result, some of the barriers they experienced to engaging with correspondence and communications were unique to HMRC as an organisation.

Receiving letters from HMRC often triggered strong emotional responses, including dread, anxiety, fear, stress and even shame. Participants described delaying opening a letter until they had mentally prepared themselves to deal with it. These emotional responses were exacerbated where participants experienced other barriers, such as low tax confidence, literacy or numeracy issues, limited access to unpaid support, and communication accessibility issues (for example, difficulty with small font size, certain formatting, or English as an additional language). ‘Resistant’ customers tended to have less intense emotional responses to letters compared to others. They also typically reported deferring opening HMRC correspondence.

Other types of HMRC communications, such as emails, texts and advertisements, did not evoke such strong responses. However some participants did express a mild frustration, in particular in relation to frequency and relevance of emails. They felt that receiving too many emails too often could lead to disengagement.

1.3.3 Developing communication principles

Building on the findings from the phase 1 interviews, one of the aims of the phase 2 workshops was to develop a set of communication principles that participants felt would help them engage with HMRC communications. Six communication principles were co-designed with participants in the workshops. These were:

consider the whole customer experience because each interaction with HMRC can affect people’s willingness and ability to engage
ensure all information and communications are user friendly and accessible (specifically, simple, clear and concise)
provide tailored and relevant content, ensuring customers receive correspondence on what is relevant to them and gives them the information they need
have content that resonates with customers and is relatable, reflecting the customer’s occupation or circumstances
make use of visual guidance to support those who find visual communications easier to understand
use multiple channels and multiple formats to reach customers with different needs

The findings suggest that tailored approaches are needed to help customers overcome their differing barriers. Linked to the COM-B categories, the research identified categories of barriers which HMRC could focus on, including: knowledge and confidence barriers, language and format barriers, ‘resistant’ attitudes and emotional (fear and anxiety) barriers. Findings showed that improving knowledge and confidence (helping people understand the information), as well as helping people overcome language and format barriers (by limiting communications to key content only), may help alleviate some of the fear and anxiety when dealing with tax issues. As a result, this may also help them to overcome some emotional barriers.

1.3.4 Communicating about Making Tax Digital for Income Tax with customers who struggle to engage with HMRC

Participants at the workshops were shown information about the forthcoming changes under Making Tax Digital for Income Tax. Awareness of Making Tax Digital for Income Tax prior to the research was low. When introduced to the idea, using a visual explainer, participants’ initial reactions were largely marked by concern and unease. Participants also highlighted areas they wanted more information on from HMRC. Primary concerns related to the likely impact on their established record keeping systems, which they were comfortable with and confident in, and the burden of transitioning to digital formats. Participants also had concerns about ‘getting it wrong’ and getting into trouble.

Reflecting the communication principles developed in phase 1, phase 2 participants suggested that the best way to inform them about Making Tax Digital for Income Tax was via multiple channels, using trusted sources and clear and relevant content, particularly addressing the areas of concern identified above. Participants also felt that the use of visuals to help explain Making Tax Digital for Income Tax was, in principle, helpful. They suggested that HMRC could support customers through YouTube videos, infographics and occupational case studies.

Question 2

2.  Introduction

Accepted Answer

This section sets out the background to the research, research aims, target population and the methodology.

2.1 Background to the research

Making Tax Digital for Income Tax rules will apply to self employed individuals and landlords whose income is above £50,000 from 2026 and those whose income is above £30,000 from 2027. Making Tax Digital for Income Tax introduces significant changes for customers, including making more frequent updates to HMRC and keeping records digitally.

HMRC communications campaigns will use multiple channels to raise awareness of the change. However, some customers who ignore or struggle to engage with traditional communications from HMRC may not realise that the change is happening and may fail to take action at the appropriate time.

2.2 Research aims and objectives

HMRC wanted to understand more about the different barriers that certain customers face which might lead them to ignore or struggle to engage with HMRC’s traditional communications. HMRC also wanted to explore the most effective communication styles, methods and channels to ensure they are made aware of Making Tax Digital for Income Tax and take action. HMRC therefore commissioned Verian (formerly Kantar Public) to carry out exploratory qualitative research with this customer group.

The research questions covered several areas:

how customers operate their businesses and what processes are in place in relation to tax and financial management
what sources of support and advice are used in relation to tax, and which are most trusted
attitudes towards HMRC and to tax
barriers to engaging with HMRC communications and any drivers of engagement
views on HMRC communications and correspondence
customers’ current understanding of Making Tax Digital for Income Tax
exploring the most effective communications styles, methods and channels to ensure these customers are made aware of Making Tax Digital for Income Tax and take action

2.2.1 Target populations for the study

The research focussed on customers in Self Assessment who earned over £30,000 from annual business or property income, who do not currently use tax agents (unrepresented), and who struggle to engage or resist engaging with HMRC communications. Derived from previously gathered insight, HMRC hypothesised that there were 2 groups of unrepresented customers within this population that should be the focus of this research.

Population 1 were customers who find it hard to engage with traditional HMRC communications. They want to engage with HMRC and are prepared to read HMRC communications and correspondence but find it difficult to do so for various reasons. People in this group face barriers which could include low levels of literacy, mental and physical health issues, low financial and tax confidence and other issues. They may seek support from friends or family or charitable organisations.

Population 2 were customers who are ‘resistant’ to engaging with HMRC. They avoid engaging with HMRC where possible and do only what they need to ensure compliance with tax obligations. They do not pay much attention to traditional communications, and this may mean that they do not make the changes that will be required under Making Tax Digital for Income Tax. It was hypothesised that they may not be inclined to take part in research conducted on behalf of HMRC and therefore ‘usual’ recruitment methods were less likely to be effective.

2.3 Methodology

A qualitative approach was used to allow topics to be explored in-depth and for a broad spectrum of views to be collected. First, a short scoping phase was undertaken. This was then followed by 2 phases of primary qualitative research which were conducted between 16 February and 3 April 2024.

The scoping phase involved a workshop with HMRC stakeholders to explore hypotheses about the 2 target populations and to review existing evidence. The first phase of fieldwork consisted of 30 interviews with unrepresented Self Assessment customers who earned over £30,000 in income or turnover and who self-defined as finding it hard to engage with HMRC communications (population 1). Interviews lasted up to 60 minutes and were conducted over Zoom (online) or by telephone according to participants’ preferences. Participants were recruited using a free find approach with screener questions to ensure participants had the desired characteristics (see section below on ‘Recruitment and research sample’).

Following the first phase, there was a period of community-based peer recruitment to reach Self Assessment customers who resisted engaging with HMRC (population 2). This involved phase 1 participants (with support from the research team) recruiting individuals from their social and professional networks who were identified as ‘resistant’.

The second phase of fieldwork consisted of 3 workshops, lasting for 90 minutes, with a mix of 8 newly recruited customers who ‘resist’ engaging with HMRC and 9 returning participants of the phase 1 in-depth interviews. The aim of the workshops was to co-develop a set of communication principles for HMRC to help those who struggle to engage or are ‘resistant’ to engaging with HMRC communications, to overcome barriers. They focussed on exploring the most effective communication styles, methods and channels HMRC could employ to ensure these customers are made aware of Making Tax Digital for Income Tax and take action. Participants received a ‘thank you’ payment for taking part in each phase of the research.

2.3.1 The COM-B behavioural framework

To help understand potential barriers to engagement with HMRC, the research used the COM-B behavioural framework as the basis of our recruitment approach and analytical framework. The COM-B model proposes that to engage in a behaviour (B) at any given moment, a person must be physically and psychologically capable (C) and have the opportunity (O) to exhibit the behaviour, as well as the want or need (motivation) to demonstrate the behaviour at that moment (M).

Applying COM-B to sampling meant we were able to achieve broad coverage of barriers within this small-scale research. It allowed an exploration of ‘barrier groups’, rather than a detailed examination of specific barriers, facilitating an exploratory approach with a relatively limited sample size.

Potential barriers to engaging with HMRC were grouped into the capability, opportunity and motivational categories.

Capability barriers could include: literacy issues, numeracy issues, neurodivergence (dyslexia, ADHD), physical health issues, mental health issues, low tax knowledge, low tax or financial confidence, poor digital skills.

Opportunity barriers could include: digital access issues (such as limited access to devices or Wi-Fi) or digital ‘reluctance’, communication accessibility issues (such as font size, formatting, language used, difficulties speaking), limited access to support from friends or family, social norms (such as a culture of anti-authoritarianism in their social or professional network).

Motivation barriers could include: high levels of stress or anxiety when dealing with HMRC or tax (including a fear of making mistakes or being penalised), not viewing tax as a priority, unwillingness to think about tax other than at set annual time periods^{[footnote 1]}, ‘resistant’ attitudes towards tax or dealing with HMRC.

2.3.2 Recruitment and research sample

In total, 38 customers took part in the research across both phases.

The sample for the first phase (in-depth interviews) consisted of 30 Self Assessment customers who struggle to engage with HMRC’s communications, but who still want and try to do so (population 1 participants). A range of primary barriers to engaging with HMRC were represented in the phase 1 sample, including 12 customers with capability barriers, 6 customers with opportunity barriers and 12 customers with motivation barriers. However, it should be noted that many participants faced more than one barrier type.

The sample included a range of customer types (landlords and sole traders), sectors, income bands (£30,000 to £49,999, £50,000 and above), and time trading (less than 5 years, between 5 and 10 years, more than 10 years). The sample also included a range of software use (no software, basic software such as spreadsheets, and fully functional software) as well as a spread of gender, age (18-45 and 46+) and regions. A full breakdown is included in section 8 Appendix .

To recruit for the second phase, the workshops, participants from phase 1 were asked to identify any ‘resistant’ customers in their social and professional networks. If they did, they were provided with information on the nature and purpose of the workshops and were asked to invite their peers to attend. As above, it was hypothesised that ‘resistant’ customers may not be inclined to take part in research conducted on behalf of HMRC. Hence community-based peer recruitment, which determines that participation is more likely if the invitation is extended by someone known and trusted, was employed to encourage participation. As this was a relatively untested approach, to inform exploratory research, no quotas were applied at this stage of recruitment.

The final phase 2 sample consisted of a total of 17 participants, of whom 9 returned from phase 1, and 8 were newly recruited ‘resistant’ customers. The 9 returning participants included 7 accompanying the ‘resistant’ peers they had recruited, and 2 participants that had expressed resistance to engaging with HMRC during their in-depth interview (and were invited back due to recruitment challenges with reaching new ‘resistant’ participants). Overall, the second phase of the research included 10 participants who were ‘resistant’ to engaging with HMRC as well as participants from across a range of sectors, time trading categories, ages and genders.

2.3.3 Analysis

Findings presented in this report bring together data from both phases of research (interviews and workshops) where relevant. Information is provided at the start of each chapter to ensure this is clear. Thematic analysis was carried out by looking across groups of COM-B barriers (as set out above), whether the participant was someone who struggled to engage but wanted to (population 1) or ‘resistant’ to engaging with HMRC communications (population 2), as well as characteristics such as customer type, time trading, and sector.

2.3.4 Research limitations

The study was primarily exploratory, seeking to pilot using community-based peer recruitment with ‘resistant’ customers as well as test initial hypotheses about struggling and ‘resistant’ customers. The study used a small purposively selected sample and as such, the findings should be considered cautiously.

The findings presented in this report are based on qualitative research methods and are intended to provide in-depth insights into participants’ experiences and perspectives. Qualitative research findings do not make claims about the size or representativeness of those views in the general population. Readers are advised to interpret the findings within the context of qualitative research and consider them as illustrative rather than representative.

The COM-B framework was used in analysis to allow examination of groups of barriers. This approach was undertaken to overcome limitations of the small sample size. It should also be noted that participants often faced multiple barriers and therefore identifying solutions that link directly back to specific barriers was not always feasible. For more in-depth understanding of specific barriers, further research is needed.

It must also be noted that during recruitment for the in-depth interviews, participants were asked to self-identify as meeting the recruitment criteria ^{[footnote 2]}. In addition, the community-based recruitment approach, used to identify and invite ‘resistant participants’ to the workshops, relied on phase 1 participants’ understanding of the population of interest. Further, as no quotas were applied to the workshops, and participant numbers were small, the resulting level of bias is unclear. Therefore, findings need to be interpreted in light of the limitations of the sampling strategy.

This report includes pen portraits (summaries of real customers that have been pseudonymised to protect participant confidentiality) to illustrate the individuals involved in the research and the barriers they encountered. These examples were selected to highlight the diverse backgrounds, experiences, and challenges faced by customers when engaging with HMRC.

Question 3

3.   Participants’ financial and tax management processes

Accepted Answer

This section sets out findings from the in-depth interviews on participants’ financial management and record keeping processes, experiences of completing the Self Assessment return, their information seeking practices and trusted sources of information.

3.1 Participants’ financial management and tax confidence

Across the sample, participants were generally confident in their financial management and record keeping processes, despite not using agents. Participants employed various record-keeping practices, including ‘pen and paper,’ spreadsheets, and specific software. For many, these methods had become habitual elements of their business operations, with their confidence growing over time. Participants who reported low confidence included those with numeracy issues (who typically sought help from friends and family) and those trading for less than 5 years. The habitual nature of record keeping processes suggests that confidence is likely dependent on familiarity and maintaining existing processes.

In addition, participants across the sample typically described themselves as digitally confident and most were comfortable working digitally. A minority, however, had digital access issues and were digitally ‘reluctant’, describing themselves as ‘old school’, ‘pen and paper’ types.

Participants typically reported awareness of tax obligations and sufficient understanding of tax to be able to fulfil their tax obligations. However, those trading for less than 5 years reported feeling that they were still figuring some things out (for example, tax allowances).

Tax anxiety was widespread across the sample, even among those who felt they had a sufficient grasp of their tax obligations. Anxiety was particularly acute among individuals with specific barriers, including those with capability barriers (particularly individuals with literacy or numeracy issues, neurodivergence, physical and mental health problems), as well as those with only a basic grasp of tax.

3.1.1 Pen portrait: A participant with limited financial knowledge and confidence who worries about ‘getting it wrong’

Beatrix is a sole trader who has worked for less than 5 years as a backing vocalist. She is anxious about tax due to low tax and financial knowledge and a fear of being penalised. She had a poor previous experience with HMRC which exacerbated her anxiety.

Beatrix has difficulty understanding legal and tax information and lacks industry and peer support to find and understand tax changes. She is prompted to seek out information by emails she reads or seeing advertisements on social media from HMRC when the tax year deadline approaches. She files her tax returns very late in the year, as she does not like to think about tax.

She has used the GOV.UK website and trusts that it contains correct information but finds it difficult to navigate and discern relevant information for her situation. The content is “very wordy” and full of jargon. Beatrix would like HMRC to provide people like her with more advice and tips via social media. She would also like familiar figures to deliver this information, such as the founder of a well-known money guidance website, as they are “trying to save you money, but the government does not care”.

3.2 Participants’ approaches to Self Assessment

Participants described completing their Self Assessment returns at different times of the year. This was typically either early (in April or May) or just before the deadline (in December or January), with participants preferring to only think about tax for a limited time in the year. Those completing it early reported feeling a need to “get it done” to lift the mental burden or mitigate against the risk of missing the deadline.

“I would rather do that.. print it off and then forget about it. I’m not one of these people that leaves it to the last minute.” (Sole trader, numeracy issues, less than 5 years trading, Human health and social work)

Those completing it close to the deadline reported feeling the need to deal with tax only when they must, or being deadline driven.

“When it comes to my own personal business, I’m like I’ll figure it out when I need to. And that’s usually at the end of the tax year.” (Sole trader, neurodivergent, less than 5 years trading, Professional, scientific, technical activities)

There was a range of barriers experienced by both early and late Self Assessment return submitters. However, certain barriers were more closely associated with submitting the return close to the deadline. These included having a ‘resistant’ attitude and being neurodivergent.

Participants typically reported experiencing a sense of dread when it came to managing the Self Assessment return. It was particularly problematic for participants with low tax confidence, communication accessibility issues (for example, difficulty with small font size, certain formatting, or English as an additional language), and tax specific anxiety. Reports of high levels of stress and anxiety were greater among those with less than 5 years trading, mental health issues and literacy or numeracy issues.

There were 2 additional barriers that stood out. The first was the technical language and jargon used in the form. The second was the formality of the language.

3.3 Participants’ tax information seeking activities

When keeping up to date with their tax obligations participants reported that they were rarely proactive about seeking information. Participants described 3 different ways of accessing information about their tax obligations:

receiving information passively involves getting information without directly seeking it out, such as through social media posts and newsletters that were followed or signed up to in the past, or through word of mouth
seeking information reactively involves looking for information in response to solving a specific tax problem or checking something they had received
seeking information proactively involves searching for information in advance of requiring it for their Self Assessment return or pre-empting possible changes and searching for information that might be relevant

Those who had been trading for less than 5 years tended to be more proactive in their information seeking, driven by a perceived need to grow their tax knowledge. However, most participants in the sample received information passively and were part of trusted networks of information distribution (such as social media or newsletters).

Although information seeking was rarely proactive, participants used a broad range of trusted sources for information and support relating to their business and tax obligations. These included informal, professional and government sources.

Informal sources included information from friends, family and social media platforms.

“[Dad’s] my little Mecca of tax information.” (Sole trader, ‘resistant’ attitude towards tax, more than 10 years trading, Arts, entertainment and recreation)

Professional sources included a range of industry, trade and accreditation bodies and financial experts such as such as the founder of a well-known money guidance website.

“Anything to do with money changes I’d just look at [well-known money guidance website].” (Sole Trader, high levels of stress or anxiety when dealing with HMRC, 5 to 10 years trading, Education)

Government sources, particularly the HMRC website, were frequently cited as information sources on tax. Many participants in the sample described using HMRC resources to cross-check information or resolve tax issues. Importantly, despite typically having negative views of HMRC, participants reported trusting it as a reliable source of tax information.

“You know the information you are seeing is coming from the exact source where there’s going to be no misinformation.” (Sole trader, low tax confidence, 5 to 10 years trading, Construction)

3.3.1 Pen portrait: A participant unwilling to think about tax unless absolutely necessary

Robert is a sole trader who has been trading for less than 5 years as a real estate manager. His main barrier to engaging with HMRC communications is motivation, driven by his frustration about the overwhelming frequency of HMRC emails he receives and an unwillingness to think about tax outside of the annual set periods.

Robert does not receive many HMRC letters and his primary correspondence with HMRC is via email. Previously, he received email reminders before Christmas to complete his tax return, despite completing it at the start of the tax year. This made him panic and second guess himself in the moment, before realising that it was a generic email.

Robert receives a lot of generic HMRC emails, especially reminder emails, “to the point where it is almost automatically deleted before reading”. Robert acknowledged that he may be missing important information but feels most of the time the content is not relevant to him (offering advice or help). Robert would like HMRC to remove him from the Income Tax reminder and help distribution list once he has completed the tax return, so he only receives important emails.

Question 4

4.  Participants’ experiences of engaging with HMRC communications

Accepted Answer

This section outlines participants’ views of HMRC, and their experiences of engaging with (and barriers to engaging with) HMRC correspondence and communications. Findings are collated from both the in-depth interviews and workshops.

4.1 Participants’ views of HMRC

Across the sample (phase 1 and phase 2), motivations to engage with HMRC were limited to it being a necessity to meet their tax obligations. Participants’ attitudes towards HMRC ranged from neutral to negative, with ‘resistant’ customers holding the most negative views. Participants with more neutral views saw HMRC simply as a formal agency doing their job. Other participants found HMRC frustrating, complex, hard to reach, uncaring and punitive or scary.

“HMRC is boring. Tax is boring. Accountancy, boring.” (Sole trader, high levels of stress or anxiety when dealing with HMRC, 5 to 10 years trading, Construction)

“They’re faceless… I don’t see any kind of human presence at HMRC… [they are] not always very approachable or helpful.” (Workshop 3, New ‘resistant’ participant)

“They’re this scary body that have the power to fine you.” (Sole trader, appropriate tax knowledge, 5 to 10 years trading, Arts, entertainment and recreation)

Throughout the research, participants struggled to distinguish between their perception of HMRC as an organisation and their experience with HMRC’s correspondence and communications. This blurred distinction influenced how participants engaged with HMRC’s communications, presenting a significant barrier to effective communication and engagement. As a result, some of the barriers they experienced to engaging with correspondence and communications were unique to HMRC as an organisation.

4.2 Participants’ responses to receiving HMRC correspondence

When exploring reactions to the arrival of a letter from HMRC, participants across the sample (phase 1 and phase 2) reported finding it emotionally challenging (see section 4.3.1). Letters typically evoked feelings of dread, anxiety, fear, stress and even shame.

“Oh God, what now.” (Sole trader, communication accessibility issues, 5 to 10 years trading, Arts, entertainment and recreation)

“It is always a bit heavy and bleak. It is never rainbows and bunnies.” (Landlord, ‘resistant’ attitude towards tax, 5 to 10 years trading, Real estate)

“I get really anxious about getting caught off guard by something.” (Sole trader, numeracy issues, less than 5 years trading, Human health and social work)

When receiving letters, participants with lower levels of tax confidence tended to experience more intense emotional reactions, while those with mental health issues often reported feeling paralysed or unable to act. In contrast, participants with ‘resistant’ attitudes towards tax, those who had been trading longer, or had greater tax confidence experienced less intense emotional reactions.

Across the sample, participants reported delaying opening HMRC letters, regardless of the intensity of their emotional response. They often needed time to mentally prepare before opening the letter, sometimes leaving it unopened until the next working day or their next ‘administration’ hour. Examples included putting the letter on the fridge or in a drawer until they felt ready to open it. This tendency to delay was especially prevalent among those with motivational barriers.

4.2.1 Pen portrait: A participant facing health issues, high levels of anxiety and a poor experience with HMRC

Vikram has been a landlord for over 5 years. He has low tax and finance knowledge and confidence and faces acute mental health challenges. He also has other priorities and time commitments. Vikram feels resentful towards HMRC about a previous experience where he felt incapable of challenging their assessment that he owed money which he felt was due to being “non-functioning” from poor mental health.

Vikram avoids thinking about tax as much as possible. He has high levels of anxiety and is “struggling to hold on to it all”, constantly juggling priorities. He regards himself as an ‘accounting incompetent’ and would like to get to a point where he can look for tax information proactively, but this currently feels impossible.

He relies on friends and tenants to keep him informed and sometimes hears things from the news but has blocked out HMRC advertisement. If he hears about tax changes, he will go to the HMRC website. However, “just thinking about having to go on to the HMRC website and looking at how to do things, I just find the whole prospect daunting”.

4.3 Barriers to opening and dealing with letters from HMRC

Across the sample, participants often experienced multiple barriers to engaging with HMRC. In particular, tax anxiety was widespread, even where it was not a primary barrier. The research also identified some customers who were ‘resistant’ to engaging with HMRC, whilst facing other barriers.

The research findings presented here are based around 4 categories of barriers to opening and dealing with letters from HMRC, which link closely to the COM-B categories. They offer a practical and actionable focus for HMRC and help with understanding how the original barrier categories (as set out in section 2.3.1) may overlap or contribute to one another. They include: emotional barriers, knowledge and confidence, language and format, as well as motivational barriers. Note that, as set out in section 2.3.4, findings from this research are qualitative in nature and are based on a small overall sample size. The findings below reflect indicative observations of the barriers faced by participants, but we do not make any statistical claims about their representativeness.

4.3.1 Emotional barriers

Emotional barriers were the most widely and intensely experienced barriers to opening, reading, understanding and actioning letters from HMRC. As set out in section 4.2, letters typically evoked feelings of dread, anxiety, fear, stress and even shame. Emotional barriers were exacerbated where participants experienced other types of barriers, including:

low tax confidence
literacy or numeracy issues
neurodivergence
physical and mental health issues
communication accessibility issues such as difficulties with font size, formatting or having English as an additional language

4.3.2 Knowledge and confidence barriers

Knowledge and confidence barriers tended to be experienced by participants:

with mental health issues
that were digitally ‘reluctant’
that had been trading for less than 5 years
that were working in novel industries (such as social media)

However, fear and anxiety when dealing with tax often affected even the most capable and confident participants in the sample.

4.3.3 Language and format barriers

Language and format barriers were common across the sample. Participants reported experiencing issues with understanding technical language and jargon, even where it was not their primary barrier. In particular, the volume and density of information that letters contained were highlighted to be barriers for the neurodivergent in the sample, as well as for those with literacy and numeracy issues.

4.3.4 Motivational barriers

Participants that were ‘resistant’ to engaging with HMRC, or did not see tax as a priority, experienced motivational barriers by definition.

4.4 Participants’ responses to other types of HMRC communications

When exploring participants’ responses to other types of HMRC communications, specifically emails, texts and advertisements, these did not tend to evoke strong emotional reactions.

4.4.1 Emails

Emails received a mostly muted response, with some participants expressing a mild frustration. Barriers to opening and dealing with emails tended to be organised around frequency and relevance. Participants reported that they received too many emails and too often, leading to disengagement. Participants also reported frequently receiving emails that they felt were not relevant to them or their circumstances. In addition, HMRC emails were, as with letters, often felt to contain complex language and dense information.

“[HMRC emails do not] really cover any changes after you’ve read it the first couple of times, now I just delete them.” (Landlord, ‘resistant’ attitude towards tax, 5 to 10 years trading, Real estate)

Issues with the technical language and jargon in emails, as with letters, were experienced by a broad range of participants across the sample. In addition, the volume and density of information in emails, again as with letters, was problematic for the neurodivergent as well as participants with literacy and numeracy barriers. The perceived high frequency of emails was a particular issue for participants with ‘resistant’ attitudes as well as those that experienced high levels of stress or anxiety when dealing with HMRC.

4.4.2 SMS text reminders

Participants’ views about SMS text reminders were mixed. SMS text reminders were found to be helpful for some customers who submit their tax return last-minute, prompting them to prepare their return. However, for customers who submit their tax return early in the tax year, these tended to evoke a stress response, prompting them to question if they had in fact already completed and submitted their return, as they believed they had. They therefore had concerns around the timing and relevance for them of SMS text reminders. ‘Resistant’ customers, and those who experienced high levels of stress or anxiety when dealing with HMRC, also reported facing issues with the timing and relevance of SMS text reminders.

“Every time I saw the text message [or email] I thought, oh my God, have I not done it? Have I not done it?” (Sole trader, communication accessibility issues, 5 to 10 years trading, Arts, entertainment and recreation)

4.4.3 Advertisements

There was little recollection of HMRC advertisements among participants in the sample. Participants often reported feeling that if an advertisement had been relevant to them (and they related to it) they would have paid attention and probably remembered it. They therefore expected that the advert had not been relevant or resonated with them. Other participants reported feeling that if they had seen a HMRC advertisement, it is likely they had ‘zoned out’ and moved on, not wanting to think about tax. ‘Resistant’ customers in particular highlighted a tendency to ‘zone out’.

Some participants felt their low recollection of HMRC advertisements may be due to not seeing adverts that were disseminated via channels or in spaces they do not use. For example, there were participants who reported not using social media, watching TV or listening to the radio.

The few participants who could remember specific adverts reported feeling that the advertisement had had little impact on them.

“It is so easy to just totally ignore an advert. On social media. as soon as I see any [HMRC] advert, I am just going past it straight away.” (Sole trader, low tax confidence, 5 to 10 years trading, Construction)

In addition, some participants with vague recollections of adverts reported finding campaigns with threatening tones disengaging and highlighted they would not pay attention to such advertisements. Those with tax specific anxiety in particular reported finding a threatening tone problematic.

Question 5

5.  Developing communication principles

Accepted Answer

In this section, we set out the 6 key communication principles co-developed with participants during the workshops. We also set out participants’ suggestions for overcoming barriers to dealing with letters from HMRC, collated from both the in-depth interviews and workshops.

5.1 Six co-developed communication principles

Building on findings from the in-depth interviews, a key aim of the phase 2 workshops was to co-design a set of communication principles that HMRC could employ to help customers who struggle to overcome barriers to engaging with HMRC communications and correspondence. This enabled 6 communication principles to be developed:

consider the whole customer experience
ensure HMRC communications and correspondence are user friendly and accessible
provide tailored and relevant content
have content that resonates and is relatable
make use of visual guidance
use a multi-channel approach

5.1.1 Consider the whole customer experience

The research findings show that participants’ views of, and their previous experiences of engaging with, HMRC impacted their responses to HMRC correspondence and communications (see section 4.1). For example, participants’ experiences in one channel or with one point of interaction, such as with the website or on a helpline, often influenced their view of HMRC and all channels of HMRC communications, including correspondence.

It is therefore important to consider all customer interactions (such as emails, texts, advertisements, forms, HMRC helpline, letters, GOV.UK website) when supporting customers to engage with HMRC communications and correspondence.

5.1.2 Ensure HMRC communications and correspondence are user friendly and accessible

Participants highlighted the importance of ensuring that HMRC communications and correspondence are user-friendly and accessible for all. For example, making the GOV.UK website easy to navigate and, in particular, making use of simple, clear and concise language across letters, emails, forms, the GOV.UK website and other communications.

Specifically, neurodivergent participants suggested that communications, messages and advertisements could be tested with neurodivergent groups to ensure understanding and accessibility.

“I am dyslexic, and I have got ADHD, and yeah, I am not representative of the whole population, but most of the population would prefer to receive the information in a way that a neurodiverse person would. Because we do not need all that long-winded jargon. We need to know what we are doing, when we are doing it, why it is needed, how to do it.” (Sole trader, neurodivergent, less than 5 years trading, Arts, entertainment and recreation)

5.1.3 Provide tailored and relevant content

Participants emphasised a need for sufficient tailoring of correspondence and communications, so that they only receive content that is relevant to them. They also suggested that clear labelling to allow them to easily identify a ‘call to action’ and distinguish it from other information would be beneficial and would allow them to deal with correspondence more easily.

Tailoring and relevance was seen as particularly important by ‘resistant’ participants.

5.1.4 Have content that resonates and is relatable

Ensuring that HMRC correspondence and communications resonate with customers also emerged as an important factor in helping to overcome barriers to engagement. Participants suggested that if the content of correspondence and communications, including advertisements, could reflect their occupations, then it would feel of greater relevance to them. This could potentially take the form of occupation-based case studies.

5.1.5 Make use of visual guidance

Visual guidance was seen to be a key element of developing user-friendly and engaging communications and correspondence. Participants with literacy and numeracy barriers, and neurodivergent participants in particular, said they would find it useful. Here participants suggested:

using social media to share ‘how to’ instructional guidance, occupational case studies and other information in visual formats (for example, infographics and visual representations that present information on tax processes quickly and clearly)
providing more detailed step-by-step video guidance, that walks customers through different parts of the Self Assessment process (for example, YouTube video guidance)

5.1.6 Use a multi-channel approach

Participants suggested that HMRC should use multiple channels and formats to reach the widest possible range of customers. Multiple channels, such as social media, billboards, TV, radio, and direct communications, were highlighted as necessary to accommodate different customer preferences and barriers. Participants mentioned that to enhance accessibility across different platforms and devices, it is essential to provide information in various formats, including visuals, hard copies, and liquid mode (which adjusts PDFs to fit any device).

It was also suggested that communications about Income Tax should be endorsed and disseminated by trusted sources, including well known financial influencers, money guidance websites and industry networks (such as property management trade bodies and landlord associations.)

5.2 Participants’ suggestions for overcoming barriers to dealing with letters from HMRC

As highlighted in section 4.3, the research sets out 4 categories of barriers to opening and dealing with letters from HMRC: emotional barriers, knowledge and confidence issues, language and format challenges, and motivational barriers. Both the in-depth interviews and the workshops explored ways that participants felt HMRC could help them overcome barriers to engaging with HMRC correspondence in particular. Building on the communication principles identified above, a number of suggestions were put forward.

When considering how to overcome knowledge and confidence barriers, participants suggested providing educational and support materials, written in easy-to-understand language. If the materials could include examples relevant to a range of occupations and circumstances, participants felt it would be easier for them to relate to and understand.

In terms of overcoming language barriers, participants suggested that HMRC could limit correspondence and communications to key content only. They highlighted the importance of using simple, clear language, and providing links to further information. In terms of format, customers may be supported by offering the option for hard copies of electronic correspondence.

The most widely experienced barriers were emotional, involving primarily experiencing fear and anxiety when receiving a letter from HMRC. However, addressing knowledge and confidence as well as language and format barriers may support customers’ confidence and alleviate some of the fear and anxiety experienced when dealing with tax issues.

Lastly, participants with ‘resistant’ attitudes reported they may be encouraged to engage by tailoring content to ensure relevance (as highlighted in section 5.1.3). It was also suggested that demarcating ‘action’ and ‘information’ correspondence and creating communications and advertisements that resonate with them (for example, by reflecting their occupation) would encourage engagement.

Question 6

6.  Communicating about Making Tax Digital for Income Tax with customers who struggle to engage with HMRC

Accepted Answer

This section sets out findings from the workshops, during which participants were asked how they thought HMRC should communicate about Making Tax Digital for Income Tax with customers who ignore or struggle to engage with HMRC.

6.1 Participants’ reactions to Making Tax Digital for Income Tax

Awareness of Making Tax Digital for Income Tax prior to the research was low. When introduced to the idea, using a visual explainer, participants’ initial reactions were largely marked by concern and unease.

“It is a jackhammer to crack an egg.” (Workshop 2, New ‘resistant’ participant)

When asked about their concerns and what they would like further information on, the range of responses included:

potential impacts on their record keeping systems and transitioning to digital records
what the need for quarterly updates would entail and the time burden this would put on customers
what the risks were around ‘getting it wrong’ and the potential to get in trouble through an innocent error
the requirement for software, together with the time and cost burden
what the justification is for the change and why it is necessary
what the benefits of Making Tax Digital for Income Tax are for customers

“When the whole Self Assessment tax return changed from paper to online, it was horrendous. It took me like a week to learn the new system… I do not particularly like change.” (Workshop 1, Returner from phase 1)

“I just have not seen any explanation as to why this is necessary.” (Workshop 3, New ‘resistant’ participant)

Participants in the workshops spontaneously expressed a view that the introduction of Making Tax Digital for Income Tax was an unnecessary burden, likely to increase stress and anxiety for themselves and others in similar situations. However, participants acknowledged their obligation to comply with Making Tax Digital for Income Tax requirements when they are implemented, despite the anticipated challenges.

6.2 Communicating about Making Tax Digital for Income Tax

6.2.1 Channels for communication

Overall, participants’ responses about how HMRC should inform customers about Making Tax Digital for Income Tax aligned with and built on the communication principles outlined in section 5 (above). Participants highlighted that communications need to use multiple channels and formats to meet different needs and reach everyone. Furthermore, participants reported that in order for customers like them to pay attention, communications should be supported and distributed by trusted sources, including well-known financial influencers and money guidance websites.

Direct correspondence from HMRC, in particular in the form of letters, was flagged as especially important for communicating about Making Tax Digital for Income Tax. Participants felt that significant changes to tax such as this, which could impact their ability to fulfil their tax obligations, ought to be directly communicated to them. They felt this was the best way to ensure they are informed as there was no guarantee that other mechanisms (such as advertisements) would reach them. Additionally, participants emphasised that HMRC direct correspondence should allow for a substantial lead time ahead of change implementation. This advance notice would give customers time to prepare and adapt.

Participants also suggested alternative methods to inform and support customers about Making Tax Digital for Income Tax. One suggestion included reaching out to ‘resistant’ customers through channels where they are already engaged, such as integrating information into the Self Assessment tax return form using question mark icons. Another suggestion was to support customers through YouTube videos and infographics, based around occupational case studies, as sources of further information.

6.2.2 Content of communications

When considering the content for communications and correspondence on Making Tax Digital for Income Tax, participants felt there was a need to include clear information on key areas of concern, as set out in section 6.1. This included:

why the change was happening
what the need for quarterly updates would entail
risks around ‘getting it wrong’
suitable or recommended software, together with the cost
the benefits for customers

“It needs to be bespoke as other people have said, and if there is any changes forthcoming, changes that can impact me, then it should, you know, be highlighted.” (Workshop 2, Returner from phase 1)

Participants also reported that communications about Making Tax Digital for Income Tax would need to have clear relevance, reflecting tangible examples of changes they would need to make, in order to resonate and feel applicable. This could include occupational case studies as sources of further information, to clarify the implications of the changes for customers.

Furthermore, communications should contain straightforward content, concise information (keeping information to the ‘need to know’) and make use of simple language as well as a friendly but formal tone.

6.2.3 Visual communications on Making Tax Digital for Income Tax

During the workshops, participants were shown a visual illustration of how Making Tax Digital for Income Tax will work in practice and were prompted to provide their views on the idea of using visual communications to support the understanding of Making Tax Digital for Income Tax. Visual communications were felt to aid customers’ understanding of Making Tax Digital for Income Tax, potentially reassuring them about the simplicity or ease of the adaptions required. Participants who struggled with blocks of text, including those with literacy barriers and neurodivergent participants, particularly welcomed the idea of a visual explainer. These participants highlighted that support for customers through YouTube videos and infographics explaining Making Tax Digital for Income Tax (what it is, how it will work for customers, and any adaptions to record keeping and tax filing needed) would be more accessible than written communications.

However, participants emphasised the need for visual communications to be carefully tailored to resonate with a diverse range of customers (for example, not just tradespeople). Additionally, participants stressed the importance of clear and simple visuals that effectively articulate the steps and requirements of Making Tax Digital for Income Tax without seeming gimmicky or to be ‘dumbing down’.

6.2.4 Making Tax Digital for Income Tax messaging

The research also tested a small selection of messages aimed at informing customers about Making Tax Digital for Income Tax. There were 4 headline messages and 5 messages with further detail.

Headline messages included:

‘We’re changing how millions of Self Assessment taxpayers keep their records and send in their tax returns.’

‘Share your records easily with HMRC, saving time and money.’

‘All customers who do tax like you will need to make changes.’

‘Self Assessment is changing for many customers – check if you need to take action now to avoid penalties.’

Messages with further detail included:

‘We understand tax can be complex. To help you work out what you need to do we have dedicated resources at xxxx. We hope this makes things easier for you.’

‘We understand tax can be complex. You can ask HMRC for help. We hope this makes things easier for you.’

‘Your software will help you to keep your records up to date.’

‘Up-to-date records mean you will be better organised to run your business and doing your tax return should be easier too.’

‘With Making Tax Digital you don’t need to do calculations by hand or worry about losing receipts.’

Overall, participants had mixed responses to both the headline messages and the messages with further detail. However, there was a preference for clear, targeted messaging as well as friendly messages. Messages that were felt to be clear and targeted included:

‘All customers who do tax like you will need to make changes.’

‘Your software will help you to keep your records up to date.’

The message that was seen to be most friendly by participants was:

‘Share your records easily with HMRC, saving time and money.’

However, participants felt that some of the messages were too heavy-handed, and fear evoking, specifically:

‘Self Assessment is changing for many customers – check if you need to take action now to avoid penalties.’

There was also dislike among participants for any ambiguous language, with the use of ‘should’ and ‘we hope’ undermining their confidence in the message.

‘Up-to-date records mean you will be better organised to run your business and doing your tax return should be easier too.’

‘We understand tax can be complex. You can ask HMRC for help. We hope this makes things easier for you.’

In addition, participants expressed scepticism about messages that referenced HMRC help or support, indicating little confidence in the accessibility and availability of HMRC support when needed.

Question 7

7.  Conclusion

Accepted Answer

This concluding section sets out a summary of the key findings from the research.

7.1 Research approach and barriers

When designing the research approach, HMRC hypothesised that there are 2 sub-sets of the overall population: customers who struggle to engage with HMRC’s traditional communications but still want to (population 1); and customers who resist engaging with HMRC as far as possible (population 2). Recruitment of population 1 to the in-depth interviews was based around (COM-B) categories of barriers, including:

capability barriers (such as literacy, numeracy, neurodivergence, health issues, low tax knowledge/confidence)
opportunity barriers (such as accessibility issues resulting from font size/formatting/language used, digital access issues, limited social support)
motivation barriers (such as high levels of anxiety when dealing with HMRC/tax, not viewing tax as a priority, unwillingness to think about tax)

Participants often faced more than one barrier to engaging with HMRC, and tax anxiety was widespread (even where it was not a primary barrier). The research also identified some customers who were ‘resistant’ to engaging with HMRC, whilst facing other barriers.

To recruit for the 3 workshops, at the second phase of the research, a community-based peer recruitment approach was employed to ensure that the views of ‘resistant’ customers (population 2) would be included.

The research was exploratory, based on a small sample of customers who self-identified as meeting the eligibility criteria, and as such the findings should be considered cautiously. Further research is required to understand the impacts of specific barriers.

7.2 Financial and tax confidence, and experiences of HMRC communications

Most participants felt confident about record keeping practices, and their approach had become a habitual part of their business operations. However, when it came to dealing with tax, as above, tax anxiety was widespread, despite participants reporting having sufficient knowledge to fulfil their tax obligations. Those with higher levels of anxiety around tax or dealing with HMRC tended to be those with capability barriers such as literacy or numeracy issues, neurodivergence, physical and mental health problems, as well as those with lower levels of understanding of tax. Further, unlike their approach to record keeping, most participants expressed that they preferred to only think about tax for a limited time in the year.

In terms of seeking information to keep up to date with tax obligations, most participants received information passively or received information through trusted networks. But some, particularly those that had been trading for less than 5 years, were more proactive. Sources used by participants included friends and family, social media, professional bodies, financial experts and financial guidance websites. Importantly, the GOV.UK website was often used to cross-check and validate information received or found via other sources.

Participants’ negative views of HMRC and a perception by some that it was uncaring and overly complex influenced how they engaged with HMRC correspondence. Receiving letters triggered strong emotional responses, and participants often delayed opening letters until they felt mentally prepared. Emotional barriers were exacerbated where low tax confidence, literacy, numeracy, communication accessibility issues, or limited unpaid support were experienced. Those trading for longer and/or with greater tax confidence, and participants with ‘resistant’ attitudes tended to have less intense emotional responses to receiving correspondence form HMRC. Overall, other types of HMRC communications and correspondence did not evoke strong responses from participants.

7.3 Designing communication principles and approaches for Making Tax Digitial for Income Tax

Six communication principles were co-designed with participants:

consider the whole customer experience
ensure HMRC communications and correspondence are user friendly and accessible
provide tailored and relevant content
have content that resonates and is relatable
make use of visual guidance
use a multi-channel approach

By applying these principles to communications and correspondence, HMRC may be able to help customers who struggle to engage with HMRC correspondence to overcome some of the barriers they face. In addition, participants reported that improving knowledge and confidence, as well as helping people overcome language and format barriers, may help alleviate some of the fear and anxiety when dealing with tax issues, thereby also helping to overcome some emotional barriers.

Overall, participants’ responses on how HMRC should inform customers about Making Tax Digital for Income Tax aligned with, and built on, the communication principles developed in the workshops. In terms of channels, participants highlighted that communications about Making Tax Digital for Income Tax would need to use multiple channels and formats to meet different needs and ensure a broad reach. Furthermore, participants reported that in order for customers like them to pay attention, communications about Making Tax Digital for Income Tax should be supported and distributed by trusted sources, including well-known financial influencers and money guidance websites.

Direct correspondence from HMRC, in the form of letters, was flagged as especially important for communicating about Making Tax Digital for Income Tax. Participants felt this was the best way to guarantee they are informed and that other mechanisms (such as advertisements) may not be as effective in reaching them. Additionally, participants emphasised that HMRC direct correspondence should allow a substantial lead time to provide sufficient time for changes to be implemented.

Finally, when considering the content of communications and correspondence on Making Tax Digital for Income Tax, participants felt that there was a need to include clear information on key areas of concern. Participants also reported that communications about Making Tax Digital for Income Tax would need to have direct relevance and feel applicable, and they suggested that using occupational case studies might offer a good way to do this. Communications should contain straightforward content, concise information (keeping information to the ‘need to know’) and make use of simple language as well as a friendly but formal tone. Furthermore, the use of visuals to help explain Making Tax Digital for Income Tax was, in principle, seen to be helpful, particularly by participants who struggle with blocks of text.

Question 8

8.  Appendix

Accepted Answer

8.1 In-depth interview (phase 1) research sample profile

All 30 participants:

had completed at least one Self Assessment return (reflecting income from self employment or property income)
self-defined as earning over £30,000 in Self Assessment income or turnover in the last tax year
self-defined as fulfilling all tax obligations (not in debt or under investigation)
were not represented by tax agents
self-defined as finding it hard to engage with HMRC communications

The criteria used to recruit participants are provided below in tables 1 to 4. It should also be noted that phase 1 participants were asked what types of barriers they faced when engaging with HMRC correspondence and communications. The research sample profile (Table 1) records participants’ primary barrier, but many participants faced more than one barrier type.

Table 1: Phase 1 research sample profile: primary criteria - main barrier

Primary Criteria	Sub-category	Number of participants
Main barrier	Capability	12
Main barrier	Opportunity	6
Main barrier	Motivation	12
Overall total	All sub-categories	30

Table 2: Phase 1 research sample profile: secondary or tertiary criteria

Secondary or tertiary criteria	Sub-category	Number of participants
Customer type	Landlord	5
Customer type	Sole trader	25
Income band	£30,000 to £49,999	21
Income band	£50,000 and above	9
Time trading	Less than 5 years	15
Time trading	between 5 and up to 10 years	11
Time trading	more than 10 years	4
Use of software	No software	9
Use of software	Basic software (for example, spreadsheets)	17
Use of software	Full software	4
Gender	Male	13
Gender	Female	17
Age	18 to 45	16
Age	46+	14

Participants appear in each of the secondary criteria categories. Therefore the number of participants column cannot be totalled up.

Table 3: Phase 1 research sample profile: sector

Sector	Number of participants
Construction	4
Real estate	6
Wholesale and retail trade	1
Professional, scientific, technical activities	1
Accommodation and food services	2
Arts, entertainment and recreation	7
Human health and social work	6
Education	1
Financial and insurance activities	1
Other	1
Total	30

Table 4: Phase 1 research sample profile: region

Region	Number of participants
Yorkshire and the Humber	2
North West England	1
North East England	3
West Midlands	5
East Midlands	1
South East	6
London	7
South West	1
Wales	3
Northern Ireland	1
Total	30

At recruitment, no participant referred to ‘unwillingness to think about tax other than at set annual time periods’ as a barrier to engaging with HMRC communications. Participants did report this behaviour in regard to completing their Self Assessment tax return (see section 3.2) but did not describe it as a barrier. ↩
In one case, information provided at interview suggests that the minimum income criteria may no longer be met due to a change in circumstances. Findings are still included in analysis as there is a low risk of resulting bias. ↩