Overview of customer research carried out by HM Revenue and Customs to understand mid-size businesses.
HM Revenue and Customs (HMRC) recognises that mid-size businesses, although a relatively small group, make a sizeable contribution to the economy and are significant in terms of their growth potential. HMRC commissioned external research in November 2012 to increase its customer understanding of the mid-size business population.
This enhanced customer research provided valuable insights and a deeper understanding of these businesses, their life events, interactions with HMRC and their use of agents and intermediaries. HMRC found that the unique set of needs, risks and behaviours that mid-size businesses present require a different approach, related to their complexity, which will allow them to provide a more effective and targeted service.
For HMRC operational purposes a mid-size business is defined as having either or both a:
- UK turnover of £10 million or above
- minimum of 20 employees
For the largest and most complex businesses, HMRC’s approach is to engage directly through a Customer Relationship Manager (CRM).
If your business has been allocated a CRM you should read the guidance for large businesses.
Working with mid-size businesses
From April 2014, HMRC began transitioning to a new strategic approach based around the research insight, with the creation of a mid-size business area. This puts the customer at the heart of what they do and will improve their customer service, risk management and compliance. HMRC is very supportive of the government’s growth agenda and through their new approach they can support customers at strategic tax ‘life’ events, for example:
- capital investment
- restructuring finances
- moving operations overseas for the first time
HMRC is proactively focusing on promoting incentives and reliefs, as well as compliance and preventing non-compliance at source.
HMRC’s approach is designed to enable them to interact with you in a way that fully recognises the needs and requirements of your business while enabling them to manage tax risks and compliance resources. Through flexible deployment of HMRC’s resources they can deliver tailored support for you during periods of growth and decline. Providing certainty through early dialogue means HMRC can help businesses in real time, as transactions develop.
Your lines of contact to HMRC remain the same, as currently the main changes are internal. HMRC will be using the insight they gain to help shape further improvements. All of this will enable HMRC to ensure businesses pay the right amount of tax at the right time, and help to make the UK a great place to do business.