Research and analysis

Trader and intermediary communications testing on UK transition: Research report

Published 15 July 2025

Qualitative research with businesses and intermediaries.

HM Revenue and Customs (HMRC) Research Report 772.

This research was commissioned under the Conservative administration (2010 to 2024), and was conducted by Verian (formerly Kantar Public) in October and November 2020.

The findings in this report reflect the attitudes of participants at the time it was conducted. Prepared by Verian for HMRC.

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

1. Executive summary

After 31 December 2020 a new border operating model will be implemented in stages for trade between Great Britain and the EU, alongside the Northern Ireland Protocol. Whilst the majority of traders know they need to take some actions to prepare for these changes, many have not yet taken action. Through the rest of 2020 and 2021, as part of a cross-government information campaign, HM Revenue and Customs (HMRC) will deliver communications to support this staging-in of controls at the border.

In order for the communications to be as effective as possible HMRC commissioned Verian (formerly Kantar Public), to test communications targeted at traders and intermediaries to optimise audience understanding and action. Findings are based on 30 online interviews with EU traders and 15 online interviews with intermediaries.

1.1 Trader and intermediary context

Across trader interviews, 4 typologies were identified based on their preparedness for the transition (‘prepared’, ‘conscientious’, ‘anxious’ and ‘relaxed’), with only a few participants who took part in the study feeling prepared. Similarly, few of the traders interviewed were aware of the UK transition communication from HMRC. 

In contrast, all intermediaries interviewed had taken action and many had signed up for HMRC emails and looked for information on the website. All intermediaries stated that they were spending increasing amounts of time advising their clients on UK transition preparations. Two intermediary typologies were identified, ‘prepared as can be’ and ‘less prepared’, with most falling into the former group. Uncertainty around the outcome of the trade deal negotiations was the main barrier to the preparedness of both traders and intermediaries. 

1.2 November communications for traders

Responses to the November letter were mixed. Traders generally appreciated the clarity of the message to act, reminder of the deadline and being informed that action is required regardless of a trade deal. However, many felt the tone was negative. Feedback indicated that improvements to relevance, comprehension, tone and formatting were needed in order for the text to more effectively trigger action.  

1.3 December communications for traders

The original December email evaluated by traders was more effective in driving the intention to act, traders felt the tone, timings and potential consequences conveyed a greater sense of urgency and call to action. Its more succinct format made the content easier to digest. However, some still disliked what they perceived as ‘threatening’ language and there continued to be questions around its personal relevance and what specific actions were required. 

Intermediaries saw an amended version of the December email. Many felt that this did not convey the level of urgency required and underplayed the consequences of not being prepared in time, the complexity of traders completing declarations themselves and the drawbacks of delaying.

Whilst intermediaries did not evaluate the original December email, their feedback suggested the amended version had beneficially reduced the negative language disliked by some traders but had equally lost some of the essential urgency, with this needing greater emphasis. Despite this, intermediaries commonly expected traders to panic and contact them as a result of the imminent deadline, especially those not currently trading with the Rest of World.

1.4 Communications for intermediaries

Intermediaries were generally positive towards the communication shown and the urgency conveyed, although many were aware of the grant and had already applied, which reduced its salience. Some intermediaries raised questions around the clarity, relevance and accuracy of the content and wanted to know if they could re-apply for the grant.

This communication triggered 4 types of responses among intermediaries, serving as a prompt for some to conduct more research, but having little impact on the less prepared group, who still perceived the uncertainty around the outcome of the trade deal negotiations as a barrier. 

2. Introduction

2.1 Background 

After 31 December 2020 a new border operating model will be implemented in stages for trade between Great Britain and European Union, alongside the Northern Ireland Protocol. Whilst the majority of traders know they need to take some actions to prepare for these changes, many have not yet taken action. 

Communications as a prompt for action is important to traders knowing what they need to do and the consequences of not acting. Through the rest of 2020 and 2021 as part of a cross-government information campaign, HMRC will deliver communications to support this staging-in of controls at the border.

The next stage of the strategy is to be more directive and for communication to be targeted and tailored to different customer groups and delivered at regular intervals to increase the sense of urgency and trigger action. In order for the communications to be as effective as possible HMRC have commissioned Verian (formerly Kantar Public), to test communications targeted at different customer groups to optimise audience understanding and action.

2.2 Research aims 

The overall aim of this research is to test communications targeted at traders and intermediaries to optimise their understanding of action required for the end of the UK transition period. 

The specific objectives of the research were to:

• explore whether traders and intermediaries are aware of and have received any HMRC communication around the UK transition and how they might be affected
• explore levels of preparedness for the end of the UK transition period
• check trader and intermediary understanding of the draft messages they will receive
• examine views and perceptions of style, tone and nuances in wording, including views on how they should be improved
• understand what actions they would take as a result of receiving the message
• explore preferred channels and media to receive information around the transition
• understand views towards the transition from phase 2 to 3 trader communication and the likelihood of traders to engage and respond
• understand intermediary views on important messages to communicate in early 2021

2.3 Method 

Findings are based on 30 online interviews lasting 45 minutes with EU traders and 15 online interviews lasting 45 minutes with intermediaries. All fieldwork took place in October and November 2020. Research took place over 3 phases, to enable an iterative process and test new versions of stimulus.

Phase 1 — Traders

The key activities included in the first research phase were:

• November letter evaluated in greater depth
• December email briefly evaluated for comparison

Phase 2 — Traders

The key activities included in the second research phase were:

• December letter evaluated in greater depth
• November email briefly evaluated for comparison

Phase 3 — Intermediaries

The key activities included in the third phase of the research were:

• December test for intermediaries
• December text for traders (informed by findings from phase 1 and 2)

2.4 Sample 

The following tables show the sample achieved for the trader and intermediary interviews. Please see the appendix for detailed sample breakdown. 

Trade sample  

Table to show the number of completed interviews throughout phase 1 and phase 2 of the research per size of the business.

Size of business	Phase 1 (21 to 23 October)	Phase 2 (28 October to 12 November)
Self-employed (0 employees)	2	2
Micro business (1 to 9 employees)	4	8
Small business (10 to 49 employees)	6	8
Total	12	18

Intermediary sample

Table to show the size of business and type of intermediary who completed interviews (from 16 to 27 of November)

Type of intermediary	Micro (0 to 9 employees, turnover less or equal £2 million)	Small (10 to 49 employees, turnover less than or equal £10million)	Medium (50 to 249, turnover less or equal £50 million)
Freight forwarder	1	5	3
Customs agent	4	0	2
Total	5	5	5

3. Trader findings  

3.1 Awareness of HMRC communications 

Only a few of the traders interviewed had seen any form of communication from HMRC about the UK transition and were aware of the preparations required. Among traders who could not recall any HMRC communications, some suggested that they may have missed or overlooked the information sent to them.

Some traders thought HMRC today is more supportive and approachable than in the past, delivering more guidance and step-by-step instructions. Some were particularly appreciative towards the speed and helpfulness of HMRC support and communications during COVID-19. These traders expected communications from HMRC to be supportive, yet firm.

3.2  Trader typologies 

Across interviews, 4 trader typologies were identified, with only a minority feeling prepared for the end of the UK transition period. The information below outlines their characteristics.

Prepared

Prepared traders had taken action and feel ready. Their barriers or drivers include:

• motivation was a driver: motivated by fear of delays to their business and by the desire to remain operational and influenced by size of business and frequency of trade and so cannot afford to not be ready in January
• opportunity was a driver: triggered to act by a third party such as invited to events or sent information by third parties they use to import or export

Conscientious

Conscientious traders had taken initial action, for example contacting freight forwarder, attending training course, but did not feel prepared. Their barriers or drivers include:

• motivation was a driver: importance of EU business and wanting to ensure continuity and growth
• capability was a barrier: believed they were lacking the knowledge to be fully prepared, questioned if they were having the right conversations, with the right ‘experts’ and if the information was sufficient

Anxious

Anxious traders had taken no action and feel immobilised and worried. Their barriers or drivers include:

• clarity was a barrier: uncertainty around transition outcome and the view that this will affect paperwork required, they do not know where to begin with preparing
• distrust was a barrier: fearful requirements may change at a cost to their business
• time or mental capacity was a barrier: felt considerable strain due to COVID-19 and focussed on business survival

Relaxed

Relaxed traders had not taken action but do not feel concerned. Their barriers or drivers include:

• clarity was a barrier: uncertainty around transition outcome and the view that this will affect paperwork required, they do not know where to begin with preparing
• motivation was a barrier: due to infrequency or quantity of trading, wait and see mindset, other priorities, too busy or too little work, already trade with Rest of World, anticipate a no deal to require minimal changes
• responsibility was a barrier: feel others have responsibility to research changes and act for example courier

3.3 Responses to the November letter 

Responses to the November letter were mixed. Traders generally appreciated the clarity of the message to act, reminder of the deadline and being informed that action is required regardless of a trade deal. However, many were opposed to what they perceived to be a negative tone, with feedback indicating opportunity to make the text more likely to trigger action by improving its relevance, comprehension, tone and formatting. The following provides more detail.

3.3.1 Tone

Responses to the November letter were polarised, with perceptions towards the tone being determined by the trader type. Anxious and conscientious traders, who were already worried about the end of the UK transition period, responded negatively, describing the tone as ‘aggressive’, ‘threatening’, ‘blaming’ and ‘exaggerated’. This was influenced by the inclusion of language such as ‘you are’ and ‘you risk blocking the border.’

This led many to feel angry and overwhelmed, with some anxious traders subsequently disengaging due to their limited mental capacity or perceptions of the level of urgency and consequences being over exaggerated. They felt the tone seemed ‘unfair’ as businesses had little time to prepare, but not due to any wrongdoing on their part.

For conscientious traders there was a lack of acknowledgement of the efforts they had made, whilst Anxious traders felt the letter was not sensitive to the current difficulties they are facing.

A small business anxious trader was quoted saying: “On top of COVID-19 this is the last thing we need.”

In comparison, relaxed and prepared traders felt the tone was ‘informative’, ‘direct’ and created a sense of urgency. Both trader groups were accepting of the level of urgency conveyed, perceiving an urgent tone to be important and necessary to trigger people to act. This was especially true if requirements are more complex and time-consuming than people expect. However, some questioned whether this would be the case in reality.

Additionally, some felt the coldness of the tone was a departure from HMRC’s more recent communications. Whilst maintaining a sense of urgency, many felt a warmer, more supportive approach (whilst still urgent) may be more appropriate given the challenging COVID-19 context.

A micro business prepared trader was quoted saying: “100% creates a sense of urgency.”

3.3.2 Relevance

Responses varied as to whether traders thought the letter was targeted at them. Prepared traders commonly felt that whilst the letter was relevant, the message no longer applied to them as they had already taken action. Those who considered the letter personally relevant tended to be bigger businesses who traded frequently with the EU. 

Some who had not taken action still questioned if it was relevant to them. They thought that due to the small volume or low cost of their imports or exports to Europe the information was not applicable and they may be exempt. This uncertainty is likely to be a barrier to the letter triggering action, with all traders wanting greater clarification as to who the letter is aimed at. 

Notably, relaxed traders felt pronouns made the information more relevant and motivating, particularly the potential cost impact of goods being seized and significant disruption to their goods. For anxious and conscientious traders, the consequences and quantity of pronouns were seen as threatening and ‘scare-mongering’. If the letter is to be this directive, traders wanted definitive clarification that the content and consequences were relevant to them.

A micro business anxious trader was quoted saying: “Would this really apply to everyone sending individual parcels? That would be awful… They need to say which businesses this letter applies to”

3.3.3 Comprehension

Traders consistently understood that the important message was to take action, with this being an urgent requirement. This was made clear through the deadline and information stating ‘You need to take action whether or not there is a deal’. This information was often surprising and viewed as the most important part of the letter. 

However, many traders were unclear of what actions they needed to take. In particular, in response to the line ‘If you are not ready and your goods don’t have the correct paperwork’ traders were uncertain as to what paperwork to complete, how much time preparations would involve and who to contact. Relaxed traders who expected changes to be minimal felt the urgency suggested greater complexity than anticipated. They therefore wanted more clarity and nuance on preparations required if they vary by business.

A small business relaxed trader was quoted saying: “I don’t really understand why this would be the case if we have a Free Trade Agreement.”

For some there was uncertainty and doubt around what action to take, for example in response to the instruction ‘You will need an expert to do your customs work for you’ it was often not immediately obvious who constitutes an expert and that they were expected to reach out to a freight forwarder. The term ‘expert’ made many traders consider someone with specialist training, who’s time would be expensive. Some also questioned if this was necessary, doubting the complexity of customs paperwork and thus, the need for an expert.

3.3.4 Format

The length of the letter was commonly seen as too long with traders wanting the information provided to be more concise - the follow-up email was consistently preferred for this reason. Many were therefore disengaged by the second page and thought this section should be shortened.

Traders often cited the ‘Delaying your declarations and duty payments’ section as too ‘wordy’ and difficult to process, with some suggesting a bullet point format might make the information more accessible. They also felt the option to delay declarations contradicted the urgent message telling them to act, suggesting this could potentially reduced to one sentence or removed completely.

A micro business prepared trader was quoted saying: “It would be better if it was just in bullet points.”

Aspects of the letter were also seen as impractical, including the number of hyperlinks as they would need to be hand typed into a web browser, which traders were reluctant to do. For anxious traders; having lots of hyperlinks suggests a need to undertake substantial research, a further demand on their time, adding to feelings of being overwhelmed.

A micro business anxious trader was quoted saying: “There’s so many hyperlinks, I don’t have time… just send me the checklist.”

3.3.5 Impact

For some traders interviewed, the letter triggered them to want to take action:

• those who used a third party or freight forwarder said they would forward them the information to clarify whether the letter is relevant and to check what action they should be taking and what they have already put in place

• traders who use an accountant planned on getting in touch to check if there is any action they should be completing

• some said they would look for the checklist to find out more information and decide what actions to take

Traders that wanted to take action were motivated by a combination of factors. These include responding to the urgency conveyed, being informed that action would be needed whether or not there is a trade deal. Also being presented with the consequence of their goods being seized and the desire to clarify if the information is relevant to them.

In contrast, a lack of perceived personal relevance was the significant barrier to some traders intending to act. Other barriers included traders finding the tone overwhelming causing their disengagement, uncertainty around who to contact and what actions to take, and distrust as to whether actions were definitely required and why this would be the case regardless of a Free Trade Agreement. 

A micro business anxious trader was quoted saying: “I would probably just speak to my haulage company and ask what plan they have in place.”

3.4 Responses to the December email 

Traders thought the tone, timings and potential consequences of the December email conveyed a greater sense of urgency whilst finding the shorter, more concise format easier to digest and less overwhelming. As a result, it prompted more traders to act compared to the letter, although some still took issue with the language and questioned its personal relevance and what specific actions were required. The following provides more detail.

3.4.1 Tone

Traders felt the tone and timings conveyed a greater sense of urgency and call to action compared to the letter. This was conveyed through headings such as ‘Act Now to Avoid Disruption’ and directive language such as ‘You must act now, or you won’t be able to trade.’

However, similar to the letter, anxious and conscientious traders felt some of the language was too forceful and threatening for example, the opening sentence and ‘You are almost out of time’, leading some of feel blamed for their inaction.

The inclusion of the consequence that traders may delay medical supplies was also strong point of contention. Some did not believe this information whilst others disliked being made to feel guilty when this was not seen as their responsibility. Conscientious traders in particular, objected to the negative tone given their efforts to prepare, with one anxious trader subsequently disengaging, suggesting that a perceived negative tone risks inhibiting action. 

Relaxed traders also noted the lack of empathy conveyed given COVID-19 and the second lockdown, with the cold tone being reminiscent of HMRC communications from the past.

A small business conscientious trader was quoted saying: “I feel like I’m being told off by the head teacher. I want some thanks for what I’ve done so far.”

3.4.2 Format

Traders interviewed consistently preferred the shorter length of the email and felt it was better structured, more succinct and easier to digest compared to the letter. This appeared to help reduce traders feeling overwhelmed after reading the content, despite the greater level of urgency conveyed. 

That said, many traders still thought the ‘Delaying your declarations and duty payments’ section was difficult to digest, disproportionate in length relative to the rest of the email and seemed to undermine the earlier message, which was urging them to take action. 

3.4.3 Timings

With only 15 days to go many traders thought the planned delivery time of the email was unfair and unrealistic. Whilst not knowing how long preparations would take, many felt they were unlikely to have sufficient time given the busy Christmas period and felt 30 days was more appropriate.

However, findings indicated the short timeframe helped trigger greater intention to act, suggesting it may be valuable to consider resending the message at 15 days. Notably, whilst some felt the second COVID-19 lockdown would hinder preparations within the 15-day timeframe, others felt it may provide the time and opportunity to prepare. 

A small business relaxed trader was quoted saying: “15 days before the deadline is far too late, no one will be doing this, it’s too close to Christmas.”

3.4.4 Relevance

Traders often felt that the highlighted consequences conveyed the importance of taking action. Similar to the letter, traders were more motivated by consequences that would have a personal and direct impact on their trading. However, there continued to be uncertainty among some traders as to whether the email was definitely aimed at them.

The risk of causing delays at the border suggested to some it may be for larger businesses moving larger volumes of goods. This was reinforced by the idea of having to use an expert. Self-employed and micro businesses in particular were concerned about the cost and tended to think they could (and wanted to) sort out their own customs work. Others thought this inclusion was aimed at inexperienced traders. 

Notably, a few questioned its relevance as they were expecting the deadline to be extended due to COVID-19 or believed the government would have to secure a Free Trade Agreement meaning actions required would be minimal. However, given the urgency conveyed, most reported that they would still take action to clarify its personal relevance.

A small business relaxed trader was quoted saying: “I find this wishy washy - it’s hard to relate to. Do I need an expert?”

3.4.5 Comprehension

Similar to the letter, whilst the need to act was clear, many traders questioned what exactly they needed to do, how to do it and in what order. Many wanted greater clarity and support in taking action, for example by providing the checklist and more specific information on resources available and which experts to contact.  

Some voiced appreciation for the trader support service web links and webinar, although these were not always noted suggesting greater signposting and grouping of support within the email is needed.

The information on delaying declarations was again seen as contradictory and difficult to digest, although the opportunity to delay appealed to some anxious and relaxed traders.

A micro business anxious trader was quoted saying: “This is confusing. Are they going to tax you? Are you going to be fined? Do I need a certificate to trade?”

3.4.6 Impact

The December email was more effective in triggering the intention to act compared to the letter, motivating traders across typologies and business sizes. This was primarily driven by the sense of urgency conveyed, with the short timeframe being especially compelling. Many traders therefore reported that they would take one of a number of actions. One possibility was to consult the checklist. Some planned to work through the checklist once it arrives and they hoped this would provide greater clarity and direction on what action take next.

Another option was to conduct research. Self-employed and micro traders were more likely to want to research online into what action they need to take. For example, clicking on the embedded links, visiting HMRC website, googling the checklist, read online forums. Anxious and relaxed traders in particular wanted to look into the option of delaying declarations.

Another action referred to was to consult clients or colleagues. Relaxed traders often planned to speak to their freight forwarder or parcel delivery company to verify if and what actions they need to take and if they can delay. A few also said they would speak to their business partner and clients to find out their perspective and decide what to do.

Some said they would find a customs agent. Several conscientious traders intended to hire a customs agent, although they were unsure how to find one and how to be certain they can be trusted, meaning sufficiently knowledgeable and meeting HMRC standards.

The timeframe within which traders intended to prepare varied depending on the circumstances of their business. Conscientious traders were extremely concerned about the short timeframe and wanted to prepare immediately to meet the deadline and continue trading, whereas anxious and relaxed traders wanted to find out more information.

Given their limited mental capacity beyond the survival of their business, anxious traders tended to want to find a way out of making costly and time-consuming preparations by looking into the option of delaying declarations, and many relaxed traders wanted to find out if the information was applicable to them. 

Despite the urgency conveyed, a few traders still did not intend to take action after reading the email. A few relaxed traders still believed the call to action did not apply to their business due to its small size, the low cost, volume and frequency of EU trading and the type of goods they trade such as, clothing, or because they thought it was the responsibility of their delivery company to take action.

Some also did not trust the information, believing that EU trading cannot grind to a halt and the government will be forced to find a solution and secure a trade agreement (resulting in less preparations required). One anxious trader felt overwhelmed and needed greater clarity on what action to take.

3.5 Intermediary responses to amended December email  

Intermediaries generally felt the reworked December email did not convey the urgency required and was too long and potentially confusing, whilst underplaying the consequences of not meeting the deadline, the complexity of traders completing declarations themselves and drawbacks of delaying.

Despite this, intermediaries commonly expected traders to panic and reach out to them via the link due to the imminent deadline, especially traders who do not currently trade with the Rest of World. The following provides more detail. 

3.5.1 Tone

Intermediaries consistently thought the reworked December email did not convey the urgency required given the imminent deadline. Contributing to this, many felt that it was missing the consequences of not being prepared, reducing the seriousness and urgency of the message.

Additionally, the notion of delaying declarations was thought to contradict the need to act now message. That said, some considered the non-threatening language to be appropriate in the context of COVID-19. This suggests the amended version was effective in removing the negative language disliked by traders but lost some of the urgency previously conveyed.

3.5.2 Format

Intermediaries widely felt the email was too long. The first half (up to ‘Further support’) was viewed as the most useful and understandable part of the email. It was considered to be well structured (through the headings and bullets), easy to navigate and instructive, informing traders of the 2 options available.

‘Further Support’ and beyond was perceived to be less well-constructed, with less engagement from traders being expected. The checklist information in particular was felt to complicate and contradict the initial message, potentially causing confusion and disengagement.

A medium freight forwarder who was as prepared as can be was quoted saying: “It’s very long and confusing for a trader.”

3.5.3 Comprehension

Intermediaries were often concerned about trader comprehension and felt the text underplayed the complexity and time-consuming nature of doing declarations. Many thought that traders may interpret the email to mean ‘contacting a specialist’ and ‘doing declarations yourself’ are equally credible and feasible options, whilst this was not perceived to be the case.

Linked to this, some imagined traders may miss the information stating that if they had not started preparing, they would need specialist support, and felt this message needed to be more prominent. Notably, intermediaries generally felt the term ‘specialist’ was appropriate, with freight forwarders appreciating their type of business being given as an example. 

Intermediaries were often also concerned about whether traders would understand the section on ‘delaying declarations’ and that the benefit of this option depends on duty tax and business size, which they felt was not clearly conveyed. Many did not think this option should be a recommended to traders due to the perceived drawbacks and risks for themselves. Traders, such as, the duplication of work and the potential financial implications of inadequate record keeping or traders going out of business.

Some also felt their clients would find it difficult to comprehend the meaning and importance of the content as they were not believed to have a basic understanding of what declarations are and the processes involved in transporting goods.

3.5.4 Accuracy 

Intermediaries also raised concerns around the accuracy of particular elements of the email. This included one intermediary who did not agree that the approval to delay declarations can be done within 30 days, another intermediary thought it needed to be specified that a duty deferment account refers to duty only and not VAT. Lastly, some intermediaries thought greater clarification was needed to highlight that the option to delay still requires simplified declarations leading to a duplication of work.

A small freight forwarder who was prepared as can be was quoted saying: “It’s skated over a lot of stuff there.”

3.5.5 Impact

Despite concerns around the limited urgency conveyed, intermediaries commonly expected traders to panic due to the deadline and reach out to them via the link, especially traders who do not currently trade with the Rest of World.

However, some intermediaries were concerned that traders may ignore the communication due to its long, complex and potentially confusing message. Some were also worried that traders may attempt to do the declarations themselves or choose to delay preparations, which could potentially cause issues for further down the line for both intermediaries and traders.

A small freight forwarder who was prepared as can be was quoted saying: “People will think we don’t need to do it or worry about it for 6 months.”

3.6 Intermediary recommendations for trader communications in 2021

Intermediaries recommended 5 areas of focus for trader communications in early 2021 including:

1. disruption avoidance or management: in the event of heavy port congestion intermediaries felt it will be most important for messaging to focus on how this challenge is being managed or can be overcome to enable the flow of trade

2. don’t delay any longer: if traders have delayed declarations, intermediaries recommended encouraging them to get processes in place as soon as possible

3. compliance messaging: the importance of complying to the new requirements, highlighting that traders’ are responsible and must build these changes into their processes

4. record keeping: linked to compliance messaging, some suggested emphasising the importance of record keeping across the delivery chain (such as everyone having identical records and the consequences of not doing so as this may not be known)

5. regulation updates: informing what new regulations, and when, come into action

On point 5, examples given related to food compliance regulations and clarifying if VAT or duty are payable on imported goods and that certification maybe required on certain goods.

3.7 Traders’ preferred communication channels 

Traders wanted to receive information through the following channels and messengers: online marketplaces, intermediaries and government announcements. Turning first to online marketplaces, some traders suggested they would be most likely to pay attention to information provided by the online marketplaces they use to trade for example, Amazon, eBay, Etsy or through social media pages aimed at small traders that use these sites. PayPal was also mentioned as a channel they regularly use and would notice communications.

Traders also reported they wanted to receive information through intermediaries. Many traders suggested their intermediaries were a relevant and important channel and had a responsibility to provide information to help them prepare. Finally, many traders also expected this information to be publicised through government announcements via billboards, TV and radio. They expected government announcements to capture their attention and validate the urgency and essential requirement of taking steps to prepare.

In terms of format, trader felt letters and emails had different benefits and drawbacks, with both options having merits. For example, letters were seen as more formal and more likely to be noticed but challenging to share with others and access web links. In comparison, emails are reviewed daily, easy to share and with accessible web links but are more easily overlooked and can appear less trustworthy such as phishing scams.

4. Intermediary findings 

4.1 Awareness of HMRC communications 

Many intermediaries were aware of UK transition communications from HMRC, for example, having accessed the HMRC website, signing up for notifications or being aware of TV and radio campaigns. Intermediaries who did not feel prepared for the transition commonly said that they found the information from HMRC unclear and difficult to understand.

Many had also received communications from trade associations, with active involvement in these being a factor which enabled some to feel they more clearly understood the new requirements. Intermediaries who had read information from sources such as British International Freight Association (BIFA) and the Institute of Export generally felt that these communications were in more accessible and easily digestible formats compared to HMRC information.

4.2 Intermediary typologies 

There were 2 intermediary types that emerged from the research: the majority who were as prepared as they could be and those who were less prepared.    

Prepared as can be intermediaries

Prepared as can be intermediaries had taken action and felt as ready as they could. Most freight forwarders and all customs agents fell into this group, as did medium size (50 plus employees) intermediaries. Their barriers or drivers included:

• motivation was a driver: they believed the UK transition deadline was final and were highly motivated to continue servicing their current clients, grow their business and stay ahead of the competition
• capability was a driver: most were aware of and had accessed the grant and tended to have more internal time and resource to prepare

Less prepared intermediaries

Less prepared intermediaries had taken some action but did not feel prepared. Only freight forwarders were within this group. Their barriers or drivers included:

• distrust was a barrier: they expressed uncertainty and distrust around the UK transition deadline and changes required caused by lack of confirmation around a trade deal and previous false starts
• clarity was a barrier: this group found information from HMRC particularly unclear and confusing, and would like more support
• capability was a barrier: they were aware of the grant but had not accessed or received it with internal capacity being a barrier to prepare
• motivation was a barrier: they also tended to have a heavy focus on Rest of World trade, with EU trade being less business critical

4.3 Responses to intermediary text 

Overall, intermediaries responded positively to the text and understood the message informing them of the grant. However, many were already aware of this and findings revealed opportunities to increase the perceived clarity, relevance and accuracy of the content. The communication had 4 types of impact on intermediaries, serving as a prompt for some, but having little impact on the less prepared group. The following provides more detail.

4.3.1 Tone

Intermediaries responded positively to the tone and appreciated the reminder that they will become increasingly busy. There was widespread agreement that the level of urgency conveyed was appropriate. However, some customs agents suggested that greater urgency could be targeted at freight forwarders who were perceived to be less prepared.

4.3.2 Format

The information was consistently seen as simple to understand due to the text being concise and written in short paragraphs, which were easily digestible.

4.3.3 Comprehension

Intermediaries understood the message informing them of the grant and understood they would experience increased demand for their services among traders, a situation many were experiencing. Many were already aware of the grant and voiced their appreciation for the support being offered by HMRC having found it useful to their business by enabling them to invest in IT hardware and software, recruitment and training staff. 

A small freight forwarder who was less prepared was quoted saying: “It’s informative… it’s telling you what you can and can’t use it [the grant] for.” 

However, the communication also raised some questions. Less prepared intermediaries were still looking for clarity around the impact on processes and changes relating to whether a trade agreement is reached. Those more prepared wanted to know whether they could reapply for the grant and when the application period ends as many were interested in applying again if this option was available.

Others ideally also wanted communications to provide clarity around some of the ongoing ‘unknowns’ such as import processes, gaining approval and the correct codes for drivers from the importing country and duty deferment.

4.3.4 Relevance 

Several intermediaries did not believe they were eligible for the grant, for example if their business was a recent start-up, reducing the relevance of the text for them. The perceived relevance was also impacted by the 30% figure as this was felt to be low for some but high for others. Thus, the capacity challenge was not uniform across intermediaries.

Currently this was more relevant to customs agents who were experiencing more incoming calls, whereas freight forwarders were having to be more proactive and reach out to clients. Notably, a few of the latter were waiting for more demand before applying for the recruitment grant.

4.3.5 Accuracy 

A few doubted the accuracy of the text, for example, the 30% figure. It was also highlighted that the grant is not only about facilitating growth, but also overcoming the business costs of preparing. One freight forwarder thought the text could more accurately explain that there are different grants available for a variety of purposes which can be applied for separately.

A less prepared small freight forwarder was quoted saying: “I wouldn’t quantify it because that may be untrue.”

4.3.6 Impact

The intermediary text had 4 types of impact on intermediaries, serving as a prompt for some but having little impact on the less prepared group:

1. conducting research: some intended on researching the grant further and applying for more money if eligible

2. forwarding communication: one planned on sending communication on to relevant person internally

3. postponing action: those less prepared did not intend to act until there is greater certainty around the outcome of the UK transition period to determine the need for new IT systems, staff and training such as when internal capacity was more of a challenge

4. had already acted: others had no intention to act but they had already applied for grant or had previously applied but had learned they were not eligible (at the time)

4.4 Intermediaries’ preferred communication channels 

Intermediaries wanted communications that abide by the following 3 principles:

1. targeted: intermediaries wanted communication updates from their trade bodies (for example BIFA) and HMRC so that they are tailored to their specific needs

2. proactive: intermediaries wanted ‘proactive’ communications where they are contacted directly rather than having to search for information themselves

3. easy to digest: they also wanted information to be accessible that presents complex information in a simple way, such as in webinars

5. Summary

The research found that only a few traders who took part in the study felt prepared for the UK transition. Similarly, few of the traders interviewed were aware of the UK transition communication from HMRC. In contrast, all intermediaries interviewed had taken steps to prepare and many had signed up for HMRC emails and looked for information on the GOV.UK website. 

Responses to the November letter aimed at traders were mixed. Traders generally appreciated the clarity of the message to act, reminder of the deadline and being informed that action is required regardless of a trade deal. However, many felt the tone was negative. Feedback indicated that improvements to relevance, comprehension, tone and formatting were needed in order for the text to more effectively trigger action. 

The original December email, aimed at and evaluated by traders, was more effective in driving the intention to act compared to the November letter. Traders felt the tone, timings and potential consequences conveyed a greater sense of urgency and call to action. Its more succinct format made the content easier to digest. However, some still disliked what they perceived as negative language and there continued to be questions around its personal relevance and what specific actions were required. 

Intermediaries saw an amended version of the December email for traders. Many felt that this did not convey the level of urgency required and underplayed the consequences of not being prepared in time, the complexity of traders completing declarations themselves and the drawbacks of delaying.

Whilst intermediaries did not evaluate the original December email, their feedback suggested the amended version had beneficially reduced the negative language disliked by some traders. However, it had equally lost some of the essential urgency, with this needing greater emphasis. Despite this, intermediaries commonly expected traders to panic and contact them because of the imminent deadline, especially those not currently trading with the Rest of World.

Intermediaries were generally positive towards the communication aimed at intermediaries and the urgency conveyed, although many were aware of the grant and had already applied, which reduced its salience. Some intermediaries raised questions around the clarity, relevance and accuracy of the content and wanted to know if they could reapply for the grant.

This communication served as a prompt for some intermediaries to conduct more research, but had little impact on those who were less prepared, who still perceived the uncertainty around the outcome of the trade deal negotiations as a barrier.