Research and analysis

Exploring business customers' use of the Business Tax Account

Published 29 September 2022

Qualitative research to explore business customers’ use of their HMRC online tax account

HM Revenue and Customs (HMRC) Research Report 677.

Research conducted by IFF Research. Prepared by IFF Research (Rob Warren, Alex Pearson, Julia Rinne and Anna Bayley) for HMRC.

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

1. Executive Summary

1.1 Introduction

The Business Tax Account is a digital tax service provided by HMRC, designed to allow business customers to access and manage their taxes in one place online. HMRC commissioned this research to address evidence gaps to increase understanding of businesses’ awareness of the Business Tax Account, their experience of using it, and the drivers and barriers to doing so. Findings will inform improvements to the Business Tax Account and, in the longer term, provide HMRC with insight to inform the early development of the Single Customer Account, which will bring together data across different taxes and data sources, to provide a single digital account for all taxpayers that is easily accessible and secure.

The specific objectives of the research were to:

• understand customers’ experiences of the Business Tax Account for those managing Pay As You Earn (PAYE), Value Added Tax (VAT), Construction Industry Scheme and Corporation Tax

• obtain insight into customer needs and expectations, drivers of use, and barriers that lead to use of non-digital channels

• identify what actions HMRC can take to improve awareness, take up and functionality of the Business Tax Account

• inform the early development of the Single Customer Account

To achieve these objectives, IFF Research conducted qualitative interviews between 29 October 2021 and 14 January 2022 with 35 business customers in the UK registered for the Business Tax Account.

1.2 Key findings

Business customers interviewed were largely positive about their experiences of using the Business Tax Account. The service was often described as straightforward to access and navigate, and many identified benefits from using it. The key benefits identified included:

• ease of access to information

• time savings

• improved understanding of their tax affairs

Across all tax types, customers said they most commonly used the Business Tax Account to check their tax status at that moment in time, including payments made and the amount of money owed. Some customers submitted returns and made payments via the Business Tax Account but the use of these features was less common than viewing amounts owed and paid. Instead, many customers reported that they used alternative methods to make payments, such as accounting or payroll software and bank transfers.

These features, particularly the ability to check amounts owed and past payments made, were identified as important to customers continued use of the Business Tax Account. Without them, participating customers felt that managing their taxes would be much more difficult and time consuming.

Most customers reported that they did not experience any barriers that prevented them from using the Business Tax Account. Where barriers to use were experienced, the key ‘pain points’ included the login process, viewing employers’ PAYE information, paying taxes via the Business Tax Account, resolving queries and finding tax information.

In these instances, participating customers resorted to using alternatives to the Business Tax Account. For example, internal accounting software, external agents/accountants, banks and non-digital HMRC channels. Once resolved, customers typically returned to the Business Tax Account.

2. Introduction

2.1 Background

The Business Tax Account is a digital tax service provided by HMRC, designed to allow business customers to access and manage their taxes in one place online. The service has two distinct areas:

• a menu for managing your account, viewing secure messages and getting help
• a business tax summary (or home page) to view taxes, and complete tasks relating to payments and returns

The Business Tax Account sits alongside the Personal Tax Account, a digital service designed to allow individuals to access and manage their taxes online. Although the Business Tax Account and Personal Tax Account will continue to exist in the short-term, the 10-year Tax Administration Strategy commits HMRC to deliver a Single Customer Account which will bring together data across different taxes and different data sources, to provide a single digital account for all taxpayers that is easily accessible and secure.

In this context, HMRC commissioned research to address evidence gaps in terms of businesses’ awareness of the Business Tax Account, their experience of using it, and the drivers and barriers to doing so. Findings will inform improvements for the Business Tax Account including practical changes to the user experience. In the longer term, the findings will also provide HMRC with insight to inform the development of the Single Customer Account.

2.2 Research Aims

The specific objectives of the research were to:

• understand customers’ experiences of the Business Tax Account for those managing PAYE, VAT, Construction Industry Scheme and Corporation Tax
• obtain insight into customer needs and expectations, drivers of use, and barriers that lead to use of non-digital channels
• identify what actions HMRC can take to improve awareness, take up and functionality of the Business Tax Account
• inform the early development of the Single Customer Account

2.3 Method

IFF Research conducted qualitative interviews with 35 business customers in the UK registered for the Business Tax Account, between October 2021 and January 2022.

Business customers were recruited for the qualitative interviews by IFF Research’s in-house recruitment team. The contact details for customers were obtained from HMRC’s database of Business Tax Account users.

Face-to-face interviews with customers were not possible due to fieldwork taking place during the COVID-19 pandemic. Therefore, all interviews were conducted remotely, either by telephone or video call. On average, each interview lasted 60 minutes.

When interpreting the data in this report it should be noted that qualitative research provides insight into perceptions, feelings, and behaviours rather than quantifiable findings from a statistically representative sample. Qualitative samples are small and purposively designed, so the findings cannot be considered as representative of the views of all Business Tax Account users.

2.4 Sample

Quotas were set for a range of criteria to ensure a good spread of business customers across a wide variety of different characteristics, including types of tax managed, frequency of Business Tax Account usage, business size, sector, geographic region and tax agent use. The tables below present the profile of business customers interviewed by the taxes managed on the Business Tax Account and the frequency of Business Tax Account usage. ^{[footnote 1]}

Taxes managed on the Business Tax Account

HMRC identified four tax types to be of interest for this research: Corporation Tax, the Construction Industry Scheme, PAYE for employers and VAT. The business customers interviewed typically used the Business Tax Account to manage more than one of these taxes, with the majority using the service to manage at least three.

To ensure the research provided a high level of detail around the drivers and barriers of using the Business Tax Account for each tax type of interest, business customers were allocated a ‘primary tax type’ to focus on during the interviews. Table 1.1 presents the profile of business customers interviewed by all the taxes managed on the Business Tax Account and their primary tax type allocated for interview.

Table 1.1 Taxes managed on the BTA

	Taxes dealt with on the BTA	Primary tax allocated for interview
Pay As You Earn	35	9
Value Added Tax	32	8
Corporation Tax	29	10
Construction Industry Scheme	10	8
Total	35	35

Frequency of Business Tax Account usage

The business customers interviewed used the Business Tax Account to varying extents. On average, customers logged into their Business Tax Account account 31 times in the year leading up to 30 September 2021, ranging from one to 100 log-ins.

To ensure the research provided insight into the experience of using the Business Tax Account for a variety of different business customers, quotas were set on the number of interviews completed with ‘frequent’ and ‘infrequent’ users of the service. Infrequent users were defined as those that logged into the Business Tax Account 13 times or less between 1 October 2020 and 30 September 2021, and frequent users were defined as those that logged in more than 13 times.^{[footnote 2]} Table 1.2 presents the number of interviews completed with each group.

Table 1.2 Frequency of Business Tax Account usage

	Completed interviews
Frequent (more than 13 log-ins)	24
Infrequent (less than 13 log-ins)	11
Total	35
Construction Industry Scheme (CIS)	10
Total	35

3. Findings

3.1 Engagement with HMRC and digital channels

This chapter covers business customers’ engagement with HMRC. First, it addresses the circumstances that cause customers to interact with HMRC, before moving on to the channels they used and their experience of those interactions. The chapter focuses on the motivations behind using digital and non-digital methods of engagement and the experience of using different channels.

Reasons for engagement with HMRC

Customers reported they did not require regular direct contact with HMRC. Generally, they only contacted HMRC when they experienced issues dealing with their taxes, or when they had questions that they could not resolve independently by searching for guidance online. The most common reasons for contacting HMRC related to payment issues or disputes. Both infrequent and frequent users of the Business Tax Account experienced the need to contact HMRC for these purposes.

“It is very rare I ever need to phone them. I have probably phoned them three or four times in the last seven years… [Once] my accounting system wasn’t pulling up the same amount as HMRC said we were owing… they were absolutely fantastic and really helpful.”

(Manufacturing, Construction Industry Scheme, frequent)

“When you have a specific scenario where something doesn’t quite fit the rules then it’s always better to have a conversation with someone.”

(Administrative and support service activities, Corporation Tax, infrequent)

Notably, customers said they did not consider digital channels, such as the Business Tax Account and GOV.UK, to be examples of direct engagements with HMRC. Instead, they interpreted direct engagement with HMRC to encompass interactions via non-digital channels, such as telephone helplines.

Methods of engagement with HMRC

Many customers interviewed identified digital channels as their first port of call when faced with an issue, typically the Business Tax Account and GOV.UK. Some customers also demonstrated an awareness of the HMRC webchat function, though few had used it. Digital channels were used as the primary channel of communication with HMRC as, when compared to non-digital alternatives, they were felt to be more convenient, efficient, and easier to use.

“The online side is really easy, especially when we had to do furlough claims and coronavirus sick pay, everything could be done through the online portal.”

(Wholesale and retail trade, PAYE, frequent)

Non-digital channels, such as telephone helplines, were also mentioned by customers as a means of engaging with HMRC. However, most of these customers would only use non-digital channels as a last resort when digital channels did not deliver the desired outcome. Nonetheless, a few customers said they preferred to use non-digital channels, as they felt that they were more ‘human’ and ‘friendly’. This preference was most commonly noted by infrequent users of the Business Tax Account.

“I wish less of life was online… doing things online is not as convenient as it’s cracked up to be.”

(Arts, entertainment and recreation, Corporation Tax, infrequent)

Experience of engagements with HMRC

Experiences of HMRC digital channels

Customers interviewed generally had positive experiences of engaging with HMRC digital channels, as they were typically able to obtain the support and guidance they required.

Customers who engaged with HMRC through digital channels commonly mentioned using GOV.UK, which they felt to be helpful and informative. GOV.UK was used by customers when searching for advice or guidance on their business taxes. Largely, it was the first place that participating customers would look for this type of information. Generally, customers used a search engine to input keywords, and then accessed the appropriate page within the GOV.UK website.

“Usually something pops up that is relevant… I might put HMRC first and then COVID or Furlough… there was loads of information on there.”

(Professional, scientific and technical activities, Corporation Tax, infrequent)

Customers felt safe and secure when using HMRC digital channels to manage their business taxes. The double authentication process when logging into services, such as the Business Tax Account, was largely appreciated and added to customers’ positive experiences of using HMRC digital channels. Customers felt that this added an extra element of security to protect their business records and financial information, and most found that it was easy to use in practice.

“I’m very happy to use online channels, it’s easy to use. User friendly and easy to navigate. All you need to do is have your details. And it feels quite secure.”

(Education, PAYE, infrequent)

A handful of customers said that they had accessed HMRC webchat but reported experiences of long wait times while using this service. Others expressed a desire to use HMRC webchat but reported that it was not available when they would have used it. Some customers suggested that if it were more widely available and easier to access, this would be a useful method of contact, which could be used for them to solve ‘quick queries’, rather than resorting to phoning HMRC.

“Sometimes I’ve attempted [using the webchat] and I’ve been waiting for that long that I’ve had to finish work, so I tried again the next day, and then given up and then phoned.”

(Manufacturing, Construction Industry Scheme, frequent)

Some participating customers had negative experiences when using GOV.UK to find information relevant to managing their business taxes. Customers noted that the large amount of information on GOV.UK was challenging for them. In these cases, they struggled to find the information that they were looking for due to the ‘sheer size’ of the information available on the site. Customers would then resort to using other sources of advice or guidance including speaking to their accountant or tax agent or using online forums and other tax websites.

“Some of the tax rules are very confusing and not very straightforward, so you have to seek professional advice, which is frustrating because we’re all quite capable, but it doesn’t feel like it’s there in black and white.”

(Education, PAYE, frequent)

Experiences of non-digital HMRC channels

Customer experiences of non-digital channels were largely focused on telephone helplines, though a few customers mentioned written postal communications. Generally, customers reported positive experiences, attributing this to representatives being helpful and knowledgeable, and therefore enabling them to resolve their queries. One customer commented that the customer service received from representatives after getting through to them had improved over recent years. Positive experiences were more likely when customers contacted HMRC via telephone helpline, rather than written communication.

“Everybody I’ve ever spoken to at HMRC has always been knowledgeable and has explained things to me.”

(Wholesale and retail trade, Corporation Tax, frequent)

However, a few customers interviewed had negative experiences when engaging with HMRC non-digital channels. There were some customers who were particularly frustrated by long waiting times when phoning helplines, as well as a lack of response to letters that had been sent to HMRC.

“That’s a little bit disturbing, when you ring up and try to speak to somebody, you can be on hold for 45 minutes, especially during the COVID crisis, you can’t speak to anybody. Now it’s impossible to speak to them.”

(Professional, scientific and technical activities, Corporation Tax, frequent)

Others who had negative experiences also reported being transferred through multiple departments before speaking to someone who could provide them with assistance. A few customers also felt that the representative on the phone was not knowledgeable enough to provide the help that they required. This was mainly because telephone enquiries were more complex than other communications with HMRC.

“I didn’t get an answer… when you do get an answer from HMRC, sadly you never get the person who knows…it just seems not very joined up.”

(Wholesale and retail trade, VAT, frequent)

“I do get letters from HMRC and in the main they are particularly incomprehensible, particularly around customs…I have a letter here which is three-pages long and it’s pretty much incomprehensible.”

(Wholesale and retail trade, PAYE, frequent)

3.2 Use and experience of the Business Tax Account

This chapter focuses on customer use and experience of the Business Tax Account. It explores how familiar customers are with the Business Tax Account, how they came to use it, and the process of how they typically access it. The different features used by customers are explored, as well as their overall impression of how useful the Business Tax Account is for their business meeting its tax obligations.

Familiarity with the Business Tax Account

All participating customers were familiar with the Business Tax Account and the main features of the service, such as viewing the amount owed, checking and making payments, and filing returns. This was demonstrated during in-depth interviews by the fact that when customers were presented with stimulus depicting the Business Tax Account, all immediately recognised the service.

Although most customers interviewed were familiar with the name Business Tax Account, many referred to the Business Tax Account by different names, including ‘The Portal’, ‘Government Gateway’, and ‘HMRC account’.

How and why customers came to use the Business Tax Account

Some participating customers were unable to recall how their business first came to use the Business Tax Account, either because this was a long time ago, or because they were not personally involved in the process. Where customers were able to recall how they first came to use the service, they often reported that they had been notified about the Business Tax Account via direct communication from HMRC. Others said that they had been directed to it by a predecessor or colleague or that they had been signposted to it by their accountant.

Among those able to comment on the decision to use the Business Tax Account, the most common driver was an expected improvement in the ease of access to information about their tax situation. Instant access to tax records was also widely seen to carry advantages in terms of time savings. It was expected to be more efficient than alternatives, such as going through a tax agent.

Furthermore, some said they were drawn to the Business Tax Account because it supported an improved understanding of their tax affairs. Customers felt that the Business Tax Account would be useful in this regard as it provided an ‘instant view’ of their tax status and a summary of all their taxes in one place.

“It is easier to keep an eye on and see where you are with tax and help me marry up what I see on my system… I didn’t think when we first started to use it that you’d be able to do the submissions electronically that way, I think it’s made it a lot easier as a business”

(Manufacturing, Construction Industry Scheme, frequent)

It should also be noted that a few customers interviewed reported using the Business Tax Account because they felt that they had to, or because they had limited alternative options. From their perspective, the Business Tax Account was the only way in which they were able to manage their tax affairs and keep track of their payments and amounts owed. These customers had generally been informed about the Business Tax Account by their tax accountant.

Accessing the Business Tax Account

Customers found accessing the Business Tax Account to be simple and straightforward. Some had the Business Tax Account homepage bookmarked or saved in their favourites, most of these being frequent users. However, slightly more customers used Google or another search engine to find the Business Tax Account, typically using a search term such as “HMRC login” or “Government Gateway”. Using a search engine instead of bookmarking the page was more common among infrequent users.

Regardless of the starting point, the process of accessing the Business Tax Account, including navigating to the log-in page and entering the relevant credentials, was described as easy. Most customers reported that the log-in process felt safe and secure.

“I think it’s a good level of security because you don’t know who’s going to sign in… when I’ve got a text with a code I know it’s me, and not someone else.”

(Manufacturing, Construction Industry Scheme, frequent)

Most infrequent users of the Business Tax Account said that they had no issues with accessing the service, though a few found the two-factor authentication process to be difficult. One customer found it onerous needing to provide both memorable information and a security code when logging in. However, it should be highlighted that such issues were rare, and most customers in this research did not report issues with logging into the Business Tax Account.

Features used by customers

Viewing amount owed and checking payments made

Across all tax types, customers most commonly used the Business Tax Account to check their tax status at that moment in time, including payments made and the amount of money owed. Furthermore, a few spoke about using the Business Tax Account to access historical payment records to understand their long-term tax situation or to check that their internal systems matched.

“It’s good for verifying what we owe, and we can reconcile that to what we think we know, and usually they are the same.”

(Manufacturing, Construction Industry Scheme, frequent)

“Even though we submit the VAT return online through Making Tax Digital, I always check that what I think has been transmitted has been received. If I see VAT owed is £25,000, I always go back a couple of days later to make sure it says on there, yes you do owe £25,000 not that something has gone wrong in between.”

(Information and communication, VAT, frequent)

Submitting returns and making payments

Some customers said they submitted returns and made payments via the Business Tax Account, although use of these features was less common than viewing amounts owed and paid. For a few customers, payments were made on their behalf by accountants or by themselves through bank transfers.

“I like to use the bank account for [making payments], it’s what I’ve been used to, I just go into the bank and pay that way.”

(Manufacturing, Construction Industry Scheme, frequent)

It was much more common for payments to be made via the Business Tax Account for PAYE for employers and VAT than other tax types. Meanwhile, submitting returns via the Business Tax Account was more common among Construction Industry Scheme customers than among customers using the Business Tax Account for other taxes. This can be explained by legislative changes that require employers and VAT customers to submit data using software other than the Business Tax Account. Customers often managed Corporation Tax via an accountant due to its complexity.

Other features

There were also other less prominent features of the Business Tax Account used by customers that were specific to particular tax types. For instance, customers who used the Business Tax Account for Construction Industry Scheme said that they often used the Business Tax Account to verify subcontractors, and a few customers who used the Business Tax Account for PAYE for employers reported using the service to check tax codes of employees. One customer found it particularly useful being able to download VAT tax certificates.

“Back in the day I may only have had one copy of the tax certificate. Now it is easy to go online, view your tax certificate and download a copy whenever needed. That is quite useful.”

(Financial and insurance activities, Corporation Tax, infrequent)

3.3 Barriers to Business Tax Account usage

This chapter focuses on the barriers to use of the Business Tax Account. Specifically, it will cover the key ‘pain points’ during the Business Tax Account ‘journey’ which have the potential to cause customers to use HMRC’s non-digital channels or alternative non-HMRC channels, before typically returning to the Business Tax Account after resolving their query.

Overview of barriers

Importantly, customers reported that they did not experience barriers that entirely prevented them from using the Business Tax Account. Most said they found the Business Tax Account easy to use and could rarely recall experiencing any issues with their account. However, there were some customers who experienced barriers which hindered their use of the Business Tax Account.

Key ‘pain points’ within the Business Tax Account journey for those customers included the log-in process, viewing employer’s PAYE information, paying their taxes via the Business Tax Account, resolving a query, and finding tax information. Alternative methods that were used to resolve these issues included non-digital HMRC channels, accountants or tax agents, internal accounting software and bank accounts. Importantly, customers who could log-in without issues, typically returned to the Business Tax Account after resolving their issue, though this tended to be for other purposes.

Barriers faced by customers whilst using the Business Tax Account

Logging in: the two-factor authentication process

Whilst most customers interviewed did not raise issues with their log-in process, a few infrequent users of the Business Tax Account had difficulty with the two-factor authentication process, finding it ‘onerous’ and ‘frustrating’. Though the cause and effect cannot be established, in some cases this may have prevented them from returning to the Business Tax Account for managing their business taxes. Instead, these users would resort to non-digital HMRC channels to gather information about their taxes, or simply use their internal accounting software to, for example, check their PAYE figures.

“I find it quite inconvenient because I have two businesses, I need to use a different ID for logging in. It can be a bit difficult, especially the security element is onerous and sometimes frustrating.”

(Arts, entertainment and recreation, Corporation Tax, infrequent)

Viewing their taxes: slow updates to PAYE figures

When customers accessed the View Your Tax feature, some experienced issues where PAYE figures on the Business Tax Account did not match their internal accounting software. These customers noted that there was a delay of up to seven working days for PAYE figures to be updated after uploading their data from their accounting software. For some, this created issues for their business, for example causing errors with payroll for staff or resulting in late payments to clients or employees. Other customers recalled being chased by HMRC for PAYE tax that had already been paid, but the Business Tax Account was not up to date with their own system. This, in some cases, caused disputes with HMRC that had to be resolved using non-digital channels.

“PAYE currently has no business benefit because it is wrong, being a week behind.”

(Administrative and support service activities, Corporation Tax, frequent)

“My system doesn’t necessarily mirror their system, which confuses me no end…it should be like looking at a bank statement.”

(Manufacturing, Construction Industry Scheme, frequent)

This barrier prevented direct use of the Business Tax Account, as these customers used alternative methods to check their PAYE information instead. This included their internal accounting software, or business bank account statements, rather than accessing this through the Business Tax Account. Whilst these customers returned to the Business Tax Account for other purposes, some would not use this feature on the Business Tax Account.

“Corporation Tax is spot on, VAT is really good, PAYE is just not as good as the other two. You do PAYE monthly so there’s more transactions which is probably why it lags.”

(Wholesale and retail trade, PAYE, frequent)

“I go on there when I want to. Nothing is stopping me from using it more, I just don’t need to because Sage is so efficient.”

(Professional, scientific and technical activities, Corporation Tax, infrequent)

Paying taxes directly via the Business Tax Account

Though some participating customers used the Business Tax Account to make payments to HMRC, many did not. In many instances this was a personal preference. For example, some customers felt that having to log-in to the Business Tax Account to make a payment was too ‘time-consuming’. Others commented that they had security concerns around paying through a government website and wished to keep more of an ‘arm’s length’ relationship with HMRC.

However, some customers reported being unable to set up a direct debit in the Business Tax Account, with a few of the opinion that their bank accounts were incompatible. Reported difficulties making payments were particularly pronounced for Corporation Tax customers. Some customers mentioned that the only way to pay this tax on the Business Tax Account was by using a credit card. In some cases, this was inconvenient for them, as it meant that the business would exceed their credit limit. To overcome this barrier, these customers paid their taxes directly through their bank accounts.

“My bank wasn’t compatible, it took me to a screen I didn’t understand, or you had to sign direct debit forms, so they take the money from you.”

(Education, PAYE, frequent)

Resolving a dispute or query

A few customers interviewed who had received penalties for late payments recalled being unable to resolve their disputes via the Business Tax Account, or through other HMRC digital channels such as email. These disputes tended to be complex in nature, including issues with Research and Development tax relief, VAT deferral schemes and PAYE payment allocations, or other specific issues which they could not settle online.

To resolve their disputes, customers resorted to non-digital channels, such as HMRC telephone helplines. Once their dispute was resolved, customers would continue to use the Business Tax Account for other tax purposes, such as viewing their taxes and paying their taxes. Most customers interviewed did not specifically state that being able to resolve these queries online would be useful to them.

“I think actually I did it online first because there is a way of arguing it online, which I did. Then I got a letter in the post saying you still have to pay it, so I phoned them to explain, and it was revoked.”

(Education, PAYE, frequent)

Finding information relevant to their business

Some participating customers were unable to find the information that they were looking for on the Business Tax Account. Largely, customers were seeking information regarding PAYE changes, or more specific information related to COVID-19 furlough schemes. For example, some customers detailed the need to find relevant PAYE information on tax code updates for their employees, information about minimum wage changes and registering for pension schemes, amongst other requirements. It was important for customers to be able to find this information as it had implications for the management of their business taxes.

Other customers commented that they were unsure which information directly applied to them, even if they were able to find it. This was due to the amount of information that was available on the Business Tax Account, and this finding was echoed for those using GOV.UK to find similar information. When customers interviewed were unable to find this information, they resorted to non-digital channels, such as phoning HMRC, as well as asking their own tax agents or accountants.

“I find it very difficult to do what I want to do, it’s not an obvious or intuitive step…I’ve always found HMRC’s sites not to be intuitive… it very rarely gets me to where I want to be.”

(Wholesale and retail trade, VAT, infrequent)

3.4 Enablers to using the Business Tax Account

This chapter focuses on the features of the Business Tax Account that customers reported as most useful. It also outlines features that customers would find useful for managing their tax obligations but are not currently available on the Business Tax Account. Finally, the chapter covers suggested improvements from customers that could help to overcome or reduce the impact of the issues and barriers discussed in the previous chapter.

Useful features of the Business Tax Account

Customers identified a number of features of the Business Tax Account as most useful to them. They generally preferred ‘checking features’, such as viewing the amount they owed or checking past payments and submitted returns. Some customers considered the ability to file returns through the Business Tax Account to be useful, though this was less common.

Viewing amount owed

Viewing the amount of tax owed was widely identified as the most useful feature of the Business Tax Account. Customers reported that this feature allowed them to keep on top of upcoming payments without having to rely on internal records or contact with HMRC through non-digital channels. Therefore, it was felt to improve efficiency. Furthermore, some customers felt this feature allowed them to spot discrepancies, or issues, earlier than they would otherwise.

“It’s quick and easy to find out when you owe money, when you should pay it and how much you should pay.”

(Transport and storage, Corporation Tax, frequent)

“It does what it needs to do, without the need for extra bells and whistles, it’s simple enough, and whatever information I need I can get it quite quickly.”

(Administrative and social support service activities, Corporation Tax, frequent)

“It’s instant, you don’t have to wait. It’s a lot quicker than it used to be over the phone or by letter.”

(Wholesale and retail trade, PAYE, frequent)

Checking submitted returns, payments, and annual statements

Many customers said they found the ability to check past submitted tax returns, payments made, and annual statements on their Business Tax Account to be useful. These features allowed customers to check that tax returns have been submitted and payments have been made and allocated correctly, and that their records match the records of HMRC.

Any discrepancies leading to potential fines are easier to spot, and payment references at year-end when filing Corporation Tax returns are all in one place. Even though most customers interviewed did not make payments directly in the Business Tax Account, being able to check past payments was considered very useful.

“I use it as a statement system I suppose… I like to check that what I’ve got on my system matches what they have got on theirs, for me it’s like doing a bank reconciliation.”

(Construction, Construction Industry Scheme, frequent)

“If anything goes wrong, which it has done, I can go back three or four months and figure out what’s happened comparing my monthly records to their records. It’s really straightforward.”

(Manufacturing, Construction Industry Scheme, infrequent)

Filing tax returns and making payments

As noted in Chapter 3, only a minority of customers said they submitted tax returns and made payments via the Business Tax Account. Instead, most customers reported that they used alternative methods to make payments (i.e. accounting or payroll software and bank transfers). However, amongst the customers that did make payments and submit returns via the Business Tax Account, these features were looked upon favourably.

The ability to make payments via the Business Tax Account was considered to be particularly useful by those that used the service for PAYE for employers. Meanwhile, customers that operated under the Construction Industry Scheme were more likely to highlight filing of tax returns as a useful feature.

“It’s pretty good for me to be able to file and check a return, if you have made a little mistake you can amend it, I just find it very useful.”

(Manufacturing, Construction Industry Scheme, frequent)

Features driving continued use of the Business Tax Account

The features outlined above, in particular the ability to check amount owed and past payments made, were identified as important to customers continued use of the Business Tax Account. Without these key features, customers felt that managing their taxes would be much more difficult and time consuming. They expected that they would have to spend more time corresponding with HMRC over the phone or by post. A few customers felt that they would not have much need to use the Business Tax Account without these features. Others said that it would have a negative impact on their business, but that there are limited alternative options to using the Business Tax Account.

Suggestions for improvement

Participating customers did not generally encounter significant issues that prevented them from using the Business Tax Account. However, further to the barriers outlined in the previous chapter, some customers did have suggestions for improvements, with the majority of these coming from frequent users.

Payments

As noted in Chapter 3, some customers reported that they were unable to make payments directly from their bank account or struggled when setting this feature up. These customers felt that being able to set up a direct debit would make it easier to manage their taxes. As discussed previously, many customers also mentioned that payment updates can be slow, particularly PAYE payments.

“Deeper integration with our accounting software would be useful for making payments.”

(Wholesale and retail trade, Corporation Tax, frequent)

Breakdowns for tax information

A few customers said they wanted a more detailed breakdown of their tax details to enable them to gain a better understanding of their business taxes. This was mentioned for both VAT and Construction Industry Scheme. Customers would have preferred to be able to analyse or break down figures in more detail, to understand what deductions and amounts owed consist of.

“Currently you can see your monthly account summary of your annual account summary where you can see for each month the payments made, the amount owed, the deductions but you can’t drill into those figures to see what they’re made of. That would be my only suggestion.”

(Administrative and support service activities, Corporation Tax, infrequent)

“On PAYE and VAT it says you owe this much and needs to be paid and with Construction Industry Scheme you don’t have a breakdown like that on the front page, so it is very easy to forget … yes, they have no idea until I have told them what we have paid somebody”

(Manufacturing, Construction Industry Scheme, frequent)

Construction Industry Scheme features

Compared to other tax types, completing a Construction Industry Scheme return was perceived as ‘clunky’ and lacking flow. Customers would have liked the process of adding subcontractors to be more streamlined. Some customers felt that there are a lot of steps to the process, and found it inconvenient that the name of the subcontractor must be spelt exactly for it to be recognised, with no option for a ‘fuzzy’ search.

“Everything else is quite straightforward but [Construction Industry Scheme] is really clunky. You get a massive list of all your subcontractors regardless of whether you have used them in years or not … I only have four subcontractors but there is a list of a hundred, so you have to go through and find who you want to pay.”

(Manufacturing, Construction Industry Scheme, frequent)

“HMRC doesn’t recognise [the subcontractor name] unless it’s 100 percent exact.”

(Professional, scientific and technical activities, Construction Industry Scheme, frequent)

Other opportunities to enhance user experience

Some customers had other suggestions for ways in which their experience of using the Business Tax Account could be improved. These can be broadly grouped into the following categories:

• navigation: some customers felt that navigation of the Business Tax Account could be improved, for example through side bar menus or a cascade system

• more up-to-date information: some felt that they would benefit from information on the Business Tax Account being updated a little bit more regularly, in particular PAYE payments. A few customers would have also liked more control over the allocation of PAYE payments

• personalisation: some customers would have preferred for the Business Tax Account to be more personalised to their own tax needs, for example by having a dashboard or a newsfeed with information relevant to their business. An example given by one customer included a dashboard with upcoming changes to rules and regulations, such as changes to minimum wage

• digital solutions: finally, some customers suggested the development or enhancement of digital solutions, such as being able to access the Business Tax Account through an app on their smartphone or being able to download data from the BTA in .csv format. Some said they would like to receive notifications and reminders from the Business Tax Account via email. A few said that they would like to be able to link their business bank account to the Business Tax Account

When making suggestions for improvements, some customers did mention features that already exist on the Business Tax Account. For example, some customers said that they would like an online chat function for getting help and support from HMRC. One customer wanted a Welsh language option, while another suggested that a page for providing feedback would be useful.

These are all existing features, which suggests that awareness around them could be improved. It should be noted that lack of awareness around existing features was much more common amongst infrequent users of the Business Tax Account than frequent users.

4. Appendix A

4.1 Table 1.3 Size of business customers by employee count

	Completed interviews
0 to 4	9
5 to 9	7
10 to 19	8
20 to 49	7
50+	4
Total	35

4.2 Table 1.4 Completed interviews by sector

	Completed interviews
Accommodation & food	1
Administration & support services	5
Arts & entertainment	4
Communication & information	2
Construction	4
Education	3
Manufacturing	4
Professional, scientific, and scientific activities	6
Transport & storage	1
Wholesale & retail	5
Total	35

4.3 Table 1.5 Completed interviews by region

	Completed interviews
East Midlands	2
East of England	1
London	7
North East	2
North West	1
Northern Ireland	1
Scotland	2
South East	7
South West	5
Wales	2
West Midlands	3
Yorkshire and the Humber	2
Total	35

1. Tables displaying the profile of business customers interviewed are available in the annex of this report. ↩

2. Infrequent users were defined as those that logged into the BTA 13 times or less between 1 October 2020 and 30 September 2021 because this was the lower quartile of logins in the sample provided by HMRC. ↩