Research and analysis

Individuals, Small Businesses and Agents Customer Survey 2022

Published 17 July 2023

Research conducted by Kantar Public among HM Revenue and Customs customers in 2022. Prepared by Kantar Public (Karen Bunt, Sarah Hingley, Rebecca Steer, John Morris, Lucy Williams, Eve Milne) for HMRC.

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

1. Executive summary

HM Revenue and Customs (HMRC) commissioned Kantar Public to undertake research on customer experiences of dealing with HMRC.

The Individuals, Small Businesses and Agents Customer Survey was first commissioned in 2015. The survey charts customer experience over time and is an important source of evidence on customer experience and perceptions of the tax administration system, to support HMRC’s strategy and operational plans.

The survey covers three of HMRC’s customer groups: Individuals, Small Businesses and Agents. The three customer groups are surveyed and reported on separately. This report covers the eighth annual survey, conducted between September and November 2022. Changes reported are statistically significant at the 95% confidence interval. Where “unchanged” is used in this report, this indicates no significant change was detected compared with previous years. Due to a change in survey method for Individuals in 2018, no comparative scores are provided for previous waves. In 2022, qualitative research was conducted with Small Businesses which focused on Small Businesses’ use of Agents and their overall experience of the ease and simplicity of completing tax administration.

1.1 Summary of findings

Experiences with and perceptions of HMRC have largely remained stable over time across all customer groups.  

Individuals 

While Individuals’ positive ratings of overall experience were unchanged compared with last year, there was a significant decrease in negative ratings. Individuals were more positive compared with 2021 about HMRC resolving queries or issues and quality of information received, with other customer experience dimensions unchanged. Individuals’ ratings of confidence and trust in HMRC were unchanged compared with 2021. 

Small Businesses 

Positive ratings of overall experience were unchanged compared with 2021 for Small Businesses. However, Small Businesses’ positive ratings for ease of finding information, HMRC had systems that prevented mistakes and time taken to reach end result declined since 2021. Use and positive ratings amongst Small Businesses of the HMRC webpages decreased compared with 2021. Small Businesses’ positive ratings of confidence decreased since 2021, while their positive ratings of HMRC treating their business fairly increased.  

Agents 

Agents’ positive ratings of overall experience were unchanged compared with 2021 although negative ratings of overall experience increased. Positive ratings for customer experience dimensions were largely stable, but Agents’ positive ratings for time taken to reach end result and getting tax transactions right decreased since 2021. Agents were less positive across a range of reputation measures including confidence, trust, and fairness where it applied to Agents’ clients compared with 2021. 

2. Headline findings

2.1 Individuals headline findings

The survey of Individuals covers members of the general public aged 16 or older. In 2022, seven in ten (69%) Individuals had an interaction with HMRC in the past 12 months, up from 66% in 2021. All Individuals surveyed are asked to rate their perception of HMRC’s reputation and attitudes to tax evasion. Individuals who interacted with HMRC are also asked to rate their experience of dealing with HMRC.

2.1.1 Customer experience

Individuals were asked about the channels they used to contact HMRC and to rate those they had used. Just over seven in ten (72%) gave a positive rating of HMRC webpages, two thirds (65%) gave a positive rating of HMRC online services, while more than half (54%) gave a positive rating of telephone helplines. Just over three quarters (77%) gave a positive rating for their HMRC Personal Tax Account. These ratings remained consistent with 2021.

Two-thirds (65%) of Individuals who had an interaction with HMRC had a positive overall experience of dealing with HMRC and was unchanged from 2021. As in previous years, Individuals who only used online channels to interact with HMRC were more likely to report a positive experience (69%) than those who used telephone and online channels (61%).

Individuals’ positive ratings of customer experience dimensions were largely unchanged between 2021 and 2022. Two dimensions saw increased positive ratings since 2021:

• HMRC resolving queries or issues: 63% in 2022, 59% in 2021

• quality of information received: 64% in 2022, 60% in 2021

Individuals’ negative ratings decreased across a range of customer experience dimensions between 2021 and 2022. These included:

• quality of information: 12% in 2021 to 8% in 2022

• ease of finding information: 17% in 2021 to 12% in 2022

• clarity of steps needed to be taken: 13% in 2021 to 10% in 2022

• HMRC staff were approachable: 12% in 2021 to 9% in 2022

• getting tax transactions right: 14% in 2021 to 9% in 2022

• HMRC systems prevented mistakes: 17% in 2021 to 13% in 2022

• someone acting on your behalf: 11% in 2021 to 6% in 2022

2.1.2 Perceptions of HMRC

Just under three-fifths (57%) of Individuals gave a positive rating for ease of dealing with their tax issues. This was unchanged since 2021. One in ten (12%) Individuals gave a negative rating, a decrease compared with 2021 (15%).

Over two in five Individuals (43%) were confident in the way HMRC was doing its job. This was unchanged from 2021. Confidence was strongly linked to views of HMRC’s efficiency, effectiveness, and fairness.

Almost a third (31%) of Individuals agreed that HMRC was efficient and does not waste money. A third (34%) agreed that HMRC applied penalties and sanctions equally. Two fifths (41%) agreed that HMRC ensures all customers pay or receive the correct amount of tax.

Three quarters (74%) agreed that HMRC treats customers fairly, unchanged from 2021.

More than half (54%) reported that they trust HMRC as an organisation, unchanged from 2021.

2.1.3 Compliance

The survey looks at different aspects of compliance. The 2022 survey looked at tax evasion. There was a decrease in the proportion of Individuals who felt tax evasion was never acceptable (80% in 2022 from 83% in 2020). Three-quarters (74%) of Individuals thought tax evasion was widespread, which was unchanged from 2020.

2.2 Small Businesses headline findings

Small Businesses were defined as businesses with an annual turnover under £10m and between 0 and 19 employees. This includes self-employed sole traders and partnerships. Almost half of businesses had no employees (48%) and 37% had one to four employees.

2.2.1 Customer experience

Small Businesses were asked about the channels they used to contact HMRC and to rate those they had used. Amongst customers who used the following channels, 80% rated the Business Tax Account positively, 69% rated HMRC’s webpages on GOV.UK positively (a decrease from 74% in 2021) and 75% rated HMRC’s other online services positively. More than half (54%) of Small Businesses rated the HMRC telephone helplines positively.

Three quarters (74%) of Small Businesses gave a positive rating for their overall experience of HMRC, in line with 2021. Similar to previous years, the smallest businesses and those that interacted with HMRC only through online channels were the most positive.

Small Businesses positive ratings of customer experience dimensions were largely unchanged between 2021 and 2022. Three dimensions saw a significant decrease in positive ratings since 2021:

• ease of finding information: 64% in 2021 to 60% in 2022

• HMRC had systems that prevented mistakes: 59% in 2021 to 54% in 2022

• acceptability of time taken to reach end result: 67% in 2021 to 62% in 2022

Small Businesses negative ratings of customer experience dimensions were also largely unchanged between 2021 and 2022. One dimension saw a significant increase in negative ratings since 2021:

• HMRC had systems that prevented mistakes: 10% in 2021 to 14% in 2022

Small Businesses described improvements HMRC can make to improve ease of dealing with tax administration during the 2022 qualitative interviews. These included:

• making online information easier to find and understand

• allowing Small Businesses to resolve errors via their HMRC tax accounts, as this a preferred method and may be quicker and easier than doing it by letter or telephone

• increasing use of email and particularly offering two-way email communications so businesses can email HMRC directly through their HMRC tax accounts. This would reduce the need to call HMRC and provide a written record of the response and be quicker than communicating by letter

• as many Small Businesses worry about tax administration, ensuring written communication with businesses are friendly and not intimidating in tone would help reduce concerns and therefore the burden of doing tax administration

Small Businesses chose to manage their tax administration in different ways. Some outsourced all administration to agents (31%), some conducted all administration in-house (34%), and some did a combination of both (35%). The qualitative research found the three main drivers of using tax agents were cost, skills and capacity. Small Businesses who outsourced all tax administration lacked people with tax knowledge within the business and felt it was more cost-effective to use an agent. Small Businesses who outsourced some tax administration had the skills and resources to handle basic, routine tasks in-house and outsourced the more complex and unfamiliar elements (such as Corporation Tax, end of year accounts and VAT). Small Businesses who managed all tax affairs in-house had experience of tax administration or felt their tax administration (such as Self-Assessment) was fairly straightforward.

2.2.2 Perceptions of HMRC

Levels of confidence in HMRC fell in 2022. More than half (54%) of Small Businesses gave a positive rating for their confidence in HMRC in 2022 compared with 63% in 2021. Just over a third (35%) of Small Businesses thought that HMRC was efficient and does not waste money in line with 2021. Two in five (39%) agreed that HMRC applied penalties and sanctions equally and half (54%) agreed that HMRC was an effective organisation. Almost seven in ten (68%) gave a positive rating for their trust in HMRC as an organisation and almost three quarters (73%) gave a positive rating for ease in dealing with tax issues in line with 2021 findings.

Positive ratings of fairness increased in 2022. Almost six in seven (84%) of Small Businesses gave a positive rating that HMRC treats their business fairly, an increase from 80% in 2021. Just over seven in ten (72%) agreed that HMRC systems integrated well with the way their business managed its tax affairs.

2.2.3 Compliance

The survey examines different aspects of compliance. The 2022 survey looked at tax evasion. Six in seven (86%) Small Businesses felt that tax evasion was never acceptable and 35% said this behaviour was widespread.

2.3 Agent headline findings

Agents are paid by customers, individuals or businesses, to represent them in dealings with HMRC. Just over half of Agents were accountancy firms (52%) and almost a third (31%) were bookkeeping firms.

Half of Agents had no employees (49%) and a quarter had between one and four employees (26%). Almost two thirds (64%) were a member of a professional organisation.

2.3.1 Customer experience

Agents were asked about the channels they used to contact HMRC and to rate those they had used. Almost all Agents used online services (97%) and three quarters (75%) used the telephone to contact HMRC. Agents who had used HMRC’s webpages rated them positively (61%), in line with 2021. Ratings of other online services also remained in line with 2021 (65% in 2022). Positive ratings for the Agent Dedicated Line (ADL) stayed in line with 2021 (38% in 2022) although remain lower than 2019 (61%). Agents’ positive ratings of other HMRC telephone helplines also remained in line with 2021 (28% in 2022).

Under half (45%) of Agents gave a positive rating for their overall experience of dealing with HMRC, on behalf of their clients, over the last 12 months. Positive ratings were in line with 2021. A quarter of Agents (26%) gave a negative rating for their overall experience, an increase from 22% in 2021. Similar to previous years, the smallest Agents and those that interacted with HMRC only through online channels were the most positive.

Agents’ positive ratings of customer experience dimensions were largely unchanged between 2021 and 2022. Two dimensions saw a significant decrease in positive ratings since 2021:

• getting tax transactions right: 58% in 2021 to 53% in 2022

• acceptability of time taken to reach end result: 31% in 2021 to 27% in 2022

Agents’ negative ratings increased across two customer experience dimensions between 2021 and 2022. These included:

• HMRC systems prevented mistakes: 24% in 2021 to 28% in 2022

• acceptability of time taken to reach end result: 45% in 2021 to 50% in 2022

2.3.2 Perceptions of HMRC

Confidence in HMRC amongst Agents decreased in 2022. Just over a third (35%) gave a positive rating, compared with 43% in 2021. Negative ratings of confidence increased from 23% in 2021 to 32% in 2022. Agents were more likely to agree that HMRC was effective (50%) than efficient (19%) and almost seven in ten (68%) agreed that HMRC treated their clients fairly. More than half (55%) of Agents gave a positive rating for their trust in HMRC, a decrease since 2021 (61%). There were also decreased positive ratings that HMRC applies penalties and sanctions equally, from 53% in 2021 to 49% in 2022. Positive ratings of ease remained in line with 2021 (44% in 2022).

2.3.3 Compliance

The survey examines different aspects of compliance. The 2022 survey looked at tax evasion. Nine in ten (90%) Agents felt that tax evasion was never acceptable and almost half (48%) said this behaviour was widespread.

3. Background and methodology

3.1 Background

HM Revenue and Customs (HMRC) commissioned Kantar Public to undertake research on customer experiences of dealing with HMRC.

HMRC is the UK’s tax and customs authority. It collects the money that pays for the UK’s public services and gives financial support to people. Its vision is to be a trusted, modern tax administration department. For more information read the Building a trusted, modern tax administration system report on GOV.UK.

HMRC commissioned the Individuals, Small Businesses and Agents Customer Survey in 2015 to provide customer understanding to support the Department’s strategy and track progress over time. The survey is an important source of evidence on customer experience and perceptions of the tax administration system. It provides evidence which contributes to measuring HMRC’s performance against three of the Department’s Strategic Objectives. These are (i) to collect the right tax and pay the right financial support (ii) to make it easy to get tax right and hard to bend or break the rules, and (iii) to maintain taxpayer’s consent by treating everyone fairly and protecting society from harm. HMRC’s Annual Report and Accounts provides information on the Department’s customer service performance. For more information view HMRC’s annual report and accounts on GOV.UK.

3.1.1 Research aims

The survey aims to:

• understand and track changes in overall customer experience over time

• understand and track changes in overall perceptions of HMRC over time

• help HMRC identify where to focus effort to improve customer experience

This report presents findings from the 2022 survey with references to findings from earlier surveys conducted annually since 2015 for each customer group. The reports for each of these years are available on GOV.UK, the most recent of which can be found by viewing ISBA 2021. Data tables have been published alongside this report which include more data from the 2022 survey. For the Small Businesses and Agents surveys, the report highlights changes between 2021 and 2022, and change over the length of the survey (2015 to 2022). It looks at changes against 2019 where relevant to highlight any differences with performance prior to the COVID-19 pandemic. Changes reported are statistically significant compared with previous years. Due to the change in survey method for the Individuals survey in 2018, the report mainly covers changes between 2021 and 2022.

The overall aim of the qualitative research in 2022 was to explore Small Businesses use of agents, and businesses overall experience of the ease and simplicity of conducting tax administration. It specifically sought to understand:

• Small Businesses’ reasons for using or not using agents

• Small Businesses’ in-house capabilities for tax administration

• what Small Businesses look for in an agent

• how agents and HMRC impact ease of tax administration for Small Businesses

3.2 Survey Methodology

3.2.1 Customer Groups

The survey covers three separate customer groups: Individuals, Small Businesses and Agents. Each group is surveyed separately and results are reported separately.

Individuals 

The survey of Individuals covers members of the general public aged 16 or older. It was agreed during the survey design that self-employed sole traders are both a valid subset of the Individuals population and a valid subset of the Small Businesses population. Self-employed people have a dual relationship with HMRC, first as private citizens who pay tax or receive benefits (including on earnings from their business and other non-business related savings and investments) and second as business owners.

Individuals who reported having any interaction with HMRC in the previous 12 months were asked to rate their experiences of HMRC on a number of dimensions. All Individuals (including those who did not report having any interactions) were asked about their perceptions of HMRC.

In 2022, the survey used a random probability Address Based Online Surveying (ABOS) method, which has been the case since 2018. In 2021 and 2022, the ABOS method was supplemented with a complementary sample drawn from Kantar Public’s random sample panel, Public Voice. The Public Voice sample was introduced to improve the representativeness of our achieved sample. The Public Voice sample completed the survey online, with content mirroring the ABOS online survey. More detail on the approaches can be found in the technical appendix.

Small Businesses

Small Businesses are defined as having a turnover of under £10m and between 0 and 19 employees.

Small Businesses were surveyed at the enterprise level (rather than the local unit or site level) as most Small Businesses are based at a single site.

The survey used two sample sources:

• the Office for National Statistics’ Inter-Departmental Business Register (IDBR) was used to cover businesses that operated a PAYE scheme or had a turnover above the VAT threshold

• HMRC’s Self-Assessment (SA) database was used to cover businesses below the VAT threshold. The technical report accompanying this report provides more information about the sampling approach for Small Businesses

The individual interviewed on behalf of the business was the owner, or a director or manager with overall responsibility for tax matters. Throughout the questionnaire, respondents were prompted to answer about their experience of dealing with HMRC on behalf of their business over the previous 12 months.

Agents

Agents are defined as ‘businesses that are paid to represent others in dealings with HMRC’. Agents were sampled at the enterprise level (rather than the local unit or site level).

The Agents sample frame was drawn from two sources:

• the IDBR: to cover Agents that operate a PAYE scheme or had a turnover above the VAT threshold

• HMRC’s SA database of customers: to cover Agents below the VAT threshold that do not have a PAYE scheme

All Agents were asked a screening question to confirm that they are a professional financial agent who personally deals with HMRC on behalf of clients.

The individual interviewed on behalf of the Agent firm was either the owner or one of the directors or partners of the Agent firm. Throughout the questionnaire, Agents were prompted to answer about their experience of dealing with HMRC on behalf of clients over the previous 12 months.

3.2.2 Fieldwork methodology

The data collection method used for the Small Businesses and Agents customer groups was Computer Assisted Telephone Interviewing. Each interview lasted around 20 minutes.

The data collection method used for Individuals was Address Based Online Surveying (section 3.3.1) supplemented by a sample from Kantar Public’s random sample panel Public Voice. These approaches allow the results to be generalisable to the wider population. A more detailed description of the methods is given in the separate Technical Annex.

Interviews were carried out with 2,273 Individuals, 2,081 Small Businesses and 1,850 Agents between 1 September and 18 November 2022.

3.2.3 Survey content

The survey covers the following areas:

• interactions with HMRC in the previous 12 months

  • rating of customer experience (including rating of channels used)

  • section of questions measuring key dimensions of experience

    • how good or poor HMRC were at getting tax (tax and benefits) and credits transactions right

    • rating the quality of information customers have looked for or received from HMRC

    • how easy or difficult it was for customers to find any information needed on tax issues from HMRC

    • HMRC made clear:

      • what steps customers needed to take

      • when everything was completed

    • how approachable (Individuals) or professional (Small Businesses and Agents) HMRC were

    • how acceptable the time taken to reach the end result was

    • how good or poor HMRC were at resolving any queries or issues

    • rating whether HMRC systems were good at preventing the customer from making mistakes

  • other measures of customer experience, reflecting the manner in which HMRC administers the tax system

    • fairness

    • personalisation

    • ease of dealing with tax issues

    • (Small Businesses only) integration with HMRC systems

• perceptions of HMRC

  • general perceptions of HMRC

    • HMRC being an efficient, effective and fair organisation

    • confidence in HMRC

    • trust in HMRC

    • perceptions of HMRC’s reputation, communication, professionalism, use of powers and mistakes

    • perceptions of compliance

• demographics

The questionnaires are included in the Technical Annex.

Individuals without interactions with HMRC over the previous 12 months were not asked about their customer experience but were asked about their perceptions of HMRC and demographic characteristics. Agents and Small Businesses were asked to answer all sections.

3.2.4 Reporting notes

Many of the questions in the survey asked customers to rate their customer experience and perceptions of HMRC using a five-point response scale, where five was the most positive response and one was the least positive response. Responses have been grouped into positive (a score of four or five), neutral (a score of three), and negative (a score of one or two). Respondents could also say ‘Don’t know’ or ‘Not applicable’. Respondents who said the question did not apply to them were excluded from the analysis of that dimension.

Where customers were asked to rate HMRC they were asked to give an overall opinion about all of their experiences of dealing with HMRC over the previous 12 months.

Where the results for one group of respondents are compared with the results for another group, any differences discussed in the text of this report were statistically significant at the 95% probability level, unless otherwise stated. This means that we can be 95% confident that the differences observed between the sub-groups are genuine differences and have not just occurred by chance. Similarly, any changes between years discussed in the text are statistically significant at the 95% probability level.

3.2.5 Qualitative Methodology

Kantar Public conducted 60 45-minute follow up telephone interviews with Small Businesses. Participants were selected from those who agreed to be recontacted during the 2022 survey. Fieldwork was undertaken between 14 November and 16 December 2022. A range of Small Businesses were included in the research, with primary quotas set based on size of business (number of employees); how often the business has contact with HMRC; and how the business uses agents to conduct their tax administration.

4. Individuals

The survey of Individuals covers members of the UK general public aged 16 or older.

There was an even split between males (48%) and females (50%). Individuals fell into the following age bands: three in ten (30%) were 16-34 or 35-54 (32%) and 37%were 55 or over. Fewer than half (45%) were employed full time, 10% were working part

time, 5% were self-employed and 38% were not in employment (e.g. studying, retired, caring for family). Just over three in five (62%) reported having a single source of income and a third (33%) reported having multiple income sources.

Seven in ten Individuals (69%) had interacted with HMRC in the last 12 months, which was an increase from 2021 (66%).

4.1 Channels used to interact with HMRC^{[footnote 1]}

Individuals were asked about the ways in which they interacted with HMRC in the last 12 months. Interactions were defined as making contact with HMRC, receiving information from HMRC or using HMRC’s online services. Of all Individuals:

• more than half (55%) of Individuals used an online channel (used an online service, including the Personal Tax Account, or looked for information on HMRC webpages), which was unchanged from 2021

• one in seven (16%) Individuals had contact with HMRC via telephone. This was unchanged from 2021 however was lower than 2019 levels (23%)

Of all Individuals:

• two in five Individuals (41%) only interacted with HMRC through online channels, which was an increase from 2021 (38%) and remained higher than 2019 (28%) levels

• the proportion of Individuals who interacted with HMRC via online and telephone channels remained consistent in 2022 (13%) with 2021

• a small proportion of Individuals only contacted HMRC by telephone (2%)

Amongst Individuals who interacted with HMRC by telephone and online channels, seven in ten (69%) had contacted HMRC by telephone because they could not resolve the issue online.

4.1.1 Channel preferences

In 2022, new measures were introduced in the survey to understand preferences for channels used to contact HMRC. Individuals were asked about the ways in which they would prefer to interact with HMRC to manage their day-to-day tax affairs, and to solve a problem in the future.

By day-to-day tax affairs, examples presented to respondents included:

• finding out, amending, querying your tax code

• submitting a tax return

• claiming a tax rebate

• informing HMRC of changes to your personal details (e.g. address)

By solve a problem, examples included:

• if you think you are paying too much tax and want to check it is correct

• if you have not received your tax credit

Individuals reported preferences for channels were similar regardless of whether they would use it for day-to-day affairs or resolving problems. Respondents could indicate a preference for more than one channel.

To manage their day-to-day tax affairs in the future, of all Individuals:

• 43% would prefer to contact HMRC by telephone

• a third (33%) would prefer to contact HMRC via a Personal Tax Account (PTA) on the internet, e.g. through the Government Gateway

• almost a third (31%) would prefer to contact HMRC by email

To solve a problem in the future, of all Individuals:

• just under half (47%) would prefer to contact HMRC by telephone

• a third (33%) would prefer to contact HMRC by email

• three in ten (30%) would prefer to submit a query on HMRC webpages via GOV.UK

4.1.2 Rating of services

Individuals were asked to rate HMRC’s contact channels, where these had been used by the respondent. The contact channels customers were asked to rate were HMRC webpages, the Personal Tax Account, other HMRC online services and HMRC telephone helplines.

• webpages: just over seven in ten gave a positive rating (72%) for HMRC webpages which was unchanged from 2021 ratings

• Personal Tax Account: three quarters (77%) of Individuals positively rated the Personal Tax Accounts which remained in line with 2021, and increased since 2019 (67%)

• other online services: two thirds (65%) of Individuals gave a positive rating of other HMRC online services which remained in line with previous years

• telephone helplines: ratings of telephone helplines remained consistent with previous years at 54%

4.2 Customer experience

The proportion of Individuals who had an interaction with HMRC in the previous 12 months who gave a positive overall experience rating was unchanged in 2022 (65%) compared with 2021. As in previous years, Individuals who only interacted with HMRC via online channels were more likely to give a positive rating (69%) compared with those who used telephone and online channels (61%).

4.2.1 Dimensions of customer experience

Individuals who had interacted with HMRC were asked to rate HMRC on nine customer experience dimensions. In 2022, Positive ratings for most dimensions remained unchanged since 2021.

There was an increase in positive ratings for the following dimensions:

• HMRC resolving queries or issues: Individuals were asked how good HMRC was at resolving queries or issues. Positive ratings increased from 59% in 2021 to 63% in 2022.

• quality of information: Individuals were asked how good the quality of information they looked for or received from HMRC was in the last 12 months. Positive ratings increased from 60% in 2021 to 64% in 2022. This customer dimension also saw a decrease in the proportion who gave a negative rating from 12% in 2021 to 8% in 2022, representing the smallest proportion who gave a negative rating across all previous years

The following six dimensions of experience saw a decrease in negative ratings, although positive ratings remain consistent with 2021:

• ease of finding information: negative ratings decreased from 17% in 2021 to 12% in 2022, representing the smallest proportion who gave a negative rating across all previous years.

• clarity of steps needed to be taken: negative rating decreased from 13% in 2021 to 10% in 2022.

• HMRC staff were approachable: one in ten (9%) gave a negative rating, a decrease from 12% in 2021.

• getting tax transactions right: Individuals were asked how good HMRC is at getting transactions right. One in ten (9%) gave a negative rating, representing a decrease from 14% in 2021 and representing the smallest proportion who gave a negative rating across all previous years. Almost two-thirds (64%) gave a positive rating

• HMRC systems prevented mistakes: the proportion who gave a negative rating decreased from 17% in 2021 to 13% in 2022 representing the smallest proportion who gave a negative rating across all previous years

• someone acting on your behalf: Individuals were asked how easy HMRC made it for someone else to act on their behalf. 6% gave a negative rating, a decrease from 11% in 2021

4.3 Views on administration of tax system

Individuals were asked about their views of the administration of the tax system. More specifically, they were asked whether HMRC treated them fairly, the ease of dealing with tax issues, and whether they found that HMRC’s services were personalised. All questions in this section were asked of Individuals who reported having had any interaction with HMRC over the last 12 months.

Respondents were asked whether HMRC treated them fairly. Three quarters (74%) of Individuals gave a positive rating. The proportion of Individuals who gave a negative rating decreased from 7% in 2021 to 5% in 2022.

More than half (57%) of Individuals gave a positive rating for ease of dealing with tax issues. Positive ratings have remained stable since 2019. The proportion of Individuals who gave a negative rating decreased from 15% in 2021 to 12% in 2022, the smallest proportion to give a negative rating across all previous years. Individuals who only used online channels were more likely to give a positive rating for ease of dealing with tax issues (63% compared with 45% who interacted using online and telephone channels).

Half (49%) of Individuals gave a positive rating that information and services were tailored to them. One in seven (14%) gave a negative rating, a decrease from 21% in 2021.

4.4 Perceptions of HMRC’s reputation

This section examines Individuals’ broader views of HMRC as an organisation. They were asked to rate HMRC on the following:

• efficient: HMRC is an efficient organisation that does not waste money

• effective: HMRC ensures all its customers pay (or receive) the correct amount of money in taxes and benefits

• fairness: HMRC applies penalties and sanctions equally for all of its customers

• overall confidence: how confident are you in the way HMRC are doing their job

• trust: HMRC is an organisation that I trust

These measures were asked of all Individuals, regardless of whether they had interacted with HMRC. Similar to previous years, ratings for these reputation dimensions were lower than the customer experience dimensions. Higher proportions of respondents were neutral or did not know compared with the customer experience dimensions.

4.4.1 Efficiency and effectiveness

Almost a third (31%) of Individuals agreed that HMRC is efficient.

Two in five Individuals (41%) agreed that HMRC was effective.

4.4.2 Fairness in applying penalties and sanctions

A third of Individuals (34%) agreed that HMRC applied penalties and sanctions equally. Positive ratings of HMRC applying penalties and sanctions equally were associated with a positive rating of overall experience (47% gave a positive rating for both measures) and trust (53% gave a positive rating for both measures).

4.4.3 Overall confidence in HMRC

Over two in five Individuals (43%) were confident in the way HMRC was doing its job, consistent with 2021 following significant decreases from 2019 levels (48%).

Ratings of confidence, efficiency, effectiveness, and fairness were closely associated, as in previous years. These ratings can be found in the accompanying data tables.

4.4.4 Overall trust in HMRC

More than half of Individuals (54%) gave a positive rating that HMRC was an organisation they trusted, consistent with 2021 when this question was first introduced.

4.4.5 Trust and Fairness

New questions were introduced in the 2022 survey asking for views on aspects of trust and fairness in HMRC. All Individuals were asked to rate HMRC on the following:

• reputation: HMRC is an organisation with a good reputation

• communication: HMRC communicates in a way that is easy for me to understand

• professional: HMRC staff are professional

• powers: HMRC uses its powers in a very forceful way

• mistakes: HMRC would admit if they made a mistake

Of all Individuals:

• just over two in five (42%) agreed and one in five (21%) disagreed that HMRC is an organisation with a good reputation.

• almost half (48%) agreed and almost one in five (18%) disagreed that HMRC communicates in a way they understand

• three in five (61%) agreed and 6% disagreed that HMRC staff are professional

• two in five (39%) agreed and one in seven (16%) disagreed that HMRC use their powers in a very forceful way

• a third (34%) agreed and three in ten (30%) disagreed that HMRC would admit if they made a mistake

4.5 Perceptions of compliance

The survey looks at different aspects of compliance. The 2022 survey looked at evasion, asking for views on the acceptability and extent of tax evasion. Questions on tax evasion were previously asked in 2020.

4.5.1 Acceptability and extent of tax evasion

Individuals were asked about the acceptability of people evading tax. Tax evasion was framed as “trying to reduce the amount of tax they have to pay by not telling HMRC about all of their income”.

Four in five (80%) Individuals reported that tax evasion was never acceptable, which was a decrease compared with 2020 (83%). Almost one in five (18%) felt that it was acceptable in some circumstances, whilst 2% said it was always acceptable.

Individuals were also asked how widespread they felt this type of behaviour was. Three-quarters (74%) of Individuals thought tax evasion was widespread, which was unchanged from 2020 following an increase from 2019 (68%).

5. Small Businesses

Small Businesses were defined as businesses with an annual turnover under £10 million and between 0 and 19 employees. Almost half of Small Businesses surveyed had no employees (48%), and just over a third had one to 4 employees (37%). The remaining 15% had between 5 and 19 employees. Over half of the Small Businesses surveyed had a turnover below the VAT threshold (54%). Almost three in ten (28%) had a turnover between £85k and £500k, with just over one in ten (12%) with turnovers of over £500k. Just over three in five (62%) reported they were self-employed.

5.1 Agent usage

Small Businesses were asked whether they outsourced any of their tax affairs to agents. Two thirds (66%) outsourced either some or all of their tax affairs, of which 31% outsourced all their work to agents and 35% outsourced some of this work. A third (34%) did all work within the business.

5.2 Management of tax administration (qualitative research)

5.2.1 Small Business capabilities to do tax administration

The qualitative research found that those responsible for tax administration within Small Businesses had a range of previous experience in completing tax administration.

Small Business owners responsible for completing tax administration were usually self-employed. They often had either:

1. no previous experience completing tax administration. They needed to learn how to complete it from scratch, unless they chose to outsource tax administration to agents

2. knowledge from previous job roles. These owners felt more confident completing tax administration, but still needed to learn about tax administration on the job

When employees were responsible for completing Small Businesses’ tax administration, they either had:

• limited or no previous experience. These employees tended to have broad roles (e.g. Office Manager, Account Manager) that involved completing a range of tasks including tax administration. These types of employees often conducted some tax administration tasks in-house and outsourced some tasks to agents. They regularly learnt about tax administration on the job, rather than through formal qualifications.

“I taught myself by reading all the notes that come with all the necessary forms.” (10 to19 employees)

• a good amount of relevant skills and experiences, or even professional qualifications, as they were employed specifically to manage tax administration (e.g. Finance Managers). These employees sometimes conducted all tax administration in-house, and sometimes outsourced the tasks they felt were most complicated to an agent.

Small Businesses who primarily learnt about tax administration on the job described a range of ways they had learnt about it and that HMRC resources (website, webinars, helpline and emails) were often not their first choice when looking for information (Small Businesses’ perceptions of HMRC resources is described in section 5.6.2). To learn about tax administration Small Businesses reported using email newsletters from agents and knowledge gained through informal conversations with their agent. They also said they learnt from newsletter emails and training provided by accounting software companies, Google searches for information, Facebook groups e.g. self employed groups, and advice from family and friends.

“I tend to go to the HMRC website for information as I go along. For example, recently we've had to pay sick pay, which we don’t have to do very often, so I’ve been to the HMRC website and worked it out.” (1 to 9 employees)

“When the NI contributions changed recently, on the payroll system, there was a message from Sage. I reckon that HMRC tell the software companies and they send emails to us.” (10 to 19 employees)

5.2.2 Completing tax administration in-house and using agents

The qualitative research identified seven key factors that drove how Small Businesses chose to manage their tax administration (whether it was all conducted in-house, some in-house and some outsourced to agents, or all outsourced):

• cost: Small Businesses felt agent fees were worth paying if the fees were small and/or it lessened fears of getting tax administration wrong. Conversely, Small Businesses might choose not to use agents if they thought the cost was too high and they could manage tax administration themselves

• skills: Small Businesses with previous experience of completing tax administration were more likely to conduct some or all tax administration in-house because they felt more capable and less worried about getting tax administration wrong

• capacity: Some Small Businesses were happy to make capacity to learn about and manage tax administration. They saw it as part of the job of running a Small Businesses and providing them with good financial oversight of their company.

  • Conversely, other Small Businesses were less happy to create capacity to manage tax administration. They felt they were too busy running their business to take on this work, or that their business was too small to warrant hiring someone new to manage their finances. For others, tax administration was seen as requiring specialist skills that only a professional agent could provide and as a result it was easier and preferable to outsource it

“It's better to use a specialist because they're always up to date. It's like going to court and deciding not to have a solicitor when you don't know the intricacies of the law.” (1 to 9 employees)

• fear of getting it wrong: Small Businesses could be nervous about getting tax administration wrong and the associated consequences, and as a result were more likely to use an agent

“Because it’s good to have somebody that sits outside the business. It’s for accountability really. It just helps with that level of somebody scrutinising things at the end and making sure it’s all on track.” (1 to 9 employees)

• type of tax administration: Certain types of tax administration were seen as more complicated and appropriate for an accountant with specialist skills to complete. Corporation Tax and Import and Export Tax were seen to require the most specialist skills, but also end of year accounts, payroll and VAT. In contrast, Self Assessment was seen as the simplest type of tax administration and therefore less necessary to outsource

“I feel that payroll changes so much with what people can claim for, what they can't claim for...I think with that sort of thing, you've got to be doing that day to day, to be on top of all the new things that come in.” (1 to 9 employees)*

“Because you don't have to enter receipts and there's not much calculation that's probably why we do it ourselves [for Self Assessment].” (Self employed)

• legacy: How Small Businesses had historically managed tax administration impacted how they continued to manage it. Small Businesses reported that they had “always done it this way” so why change it and “if it ain't broke don't fix it.”

• financial oversight: Some Small Businesses valued the financial oversight doing tax administration offered them and were therefore more willing to conduct tax administration in-house

“By doing it, it helps you understand what's really happening within your business. That's such a critical thing people sometimes take their eye off...”(1 to 9 employees)*

Small Businesses expressed few plans or motivations for changing how they manage tax administrations because they were happy with their current approaches.

Small Businesses who outsourced all or some tax administration said they might consider managing some tax administration in-house if their business grew because there would be more capacity available to manage it or growth would help justify the added investment of hiring specific staff. Those who outsourced some tax administration said they might outsource more if the taxes they need to pay change and are more complicated.

Small Businesses who managed all tax administration in-house said they might consider outsourcing some of their tax administration if they grew and their administration became more complicated (such as if their tax status changes i.e. if they become VAT registered).

5.2.3 Small Businesses communication with agents

For Small Businesses using agents, communications flowed in both directions between the businesses and agents through a range of communication channels. Small Businesses usually contacted agents to provide data and seek advice. Agents tended to contact Small Businesses to request information and share updates. Communications could be at consistent points in the year (e.g. when specific tax administration needs completing), or on an ad hoc basis (e.g. when advice is requested). The amount of communication with agents was primarily driven by the complexity and amount of outsourced tax administration.

5.3 Channels used to interact with HMRC

Small Businesses were asked about the ways they had dealt with HMRC in the previous 12 months. Dealing with HMRC was defined as where they had made contact with HMRC, received information from HMRC or made use of HMRC’s online services.

Small Businesses continued to contact HMRC through a range of channels, with 75% interacting via multiple channels, lower than 2021 (81%). Small Businesses used the following channels to have contact with HMRC:

• just over three quarters (77%) of Small Businesses had online contact with HMRC

• just over three in five (62%) searched for information on the HMRC webpages of GOV.UK, a decrease from 70% in 2021

• half (50%) used the Business Tax Account

• fewer than half (47%) had contact by post

• just over a quarter (28%) had contact by telephone

The following proportions of Small Businesses had contact using online and telephone contact channels:

• more than half (53%) had contact through online channels only, a decrease from 59% in 2021

• a quarter (24%) had contact by online and telephone channels

• 4% contacted HMRC by telephone and did not use any online channels

The proportion of Small Businesses only interacting through online channels increased between 2019 (46%), 2020 (58%) and 2021 (59%) but decreased to 53% in 2022. This decline was driven by reduced usage of HMRC webpages. They were used by just over three in five Small Businesses (62%) in 2022 compared with 70% in 2021.

Just over seven in ten (72%) Small Businesses contacted HMRC at least once in 2022, a figure in line with 2021. Just over a quarter (27%) reported they did not interact with HMRC at all. Almost half reported contacting HMRC between one and four times (46%) with just over one in seven (17%) reporting they contacted HMRC between five and ten times.

Small Businesses who had interacted with HMRC by telephone and online channels were asked if they had called HMRC because they could not resolve the issue online. Just over seven in ten (72%) said they had called because they could not resolve the query online, a figure in line with 2021.

5.3.1 Channel preferences

In 2022, new measures were introduced to understand preferences for channels used to contact HMRC. Small Businesses were asked about the ways in which they would prefer to interact with HMRC to manage their day to day tax affairs (e.g. submitting a tax return or looking for information on a change in tax rates), and to solve a problem in the future (e.g. if they had a query about the amount of tax due). Respondents could indicate a preference for more than one channel.

To manage their day to day tax affairs in the future, of all Small Businesses:

• 63% would prefer to contact HMRC via telephone

• 54% would prefer to contact HMRC via email

• 43% would prefer to contact HMRC via live webchat with an HMRC representative

• 41% would prefer to contact HMRC via a Business Tax Account

To solve a problem in the future, of all Small Businesses:

• 74% would prefer to contact HMRC via telephone

• 60% would prefer to contact HMRC via email

• 46% would prefer to submit a query on HMRC webpages via GOV.UK

• 45% would prefer to contact HMRC via live webchat with an HMRC representative

5.3.2 Rating of services

Small Businesses that had a Business Tax Account (BTA), searched for information on HMRC webpages on GOV.UK or used any other HMRC online services were asked to rate their experiences of using these online services. Similarly, those that had contact with HMRC over the phone were asked to rate their experience of the telephone helplines.

• webpages: seven in ten (69%) Small Businesses gave a positive rating for HMRC webpages on GOV.UK in 2022, a decline since 2021 (74%). Businesses that only interacted with HMRC online were more positive in rating the webpages than those that interacted online and via telephone (72% compared with 59%)

• other online services: Three quarters (75%) of Small Businesses rated other online services positively, which decreased since 2021 (79%)

• Business Tax Account: Small Businesses’ ratings of the Business Tax Account remained positive and stable at 80% in 2022 compared with 2021

• telephone helplines: Just over half of Small Businesses (54%) gave a positive rating of HMRC telephone helplines in 2022, unchanged since 2021

5.4 Customer experience

Small Businesses were asked to rate their overall experience of interacting with HMRC based on all of their interactions over the last 12 months. Three quarters (74%) gave a positive rating, in line with 2021. Only 8% of Small Businesses rated their overall experience negatively. The smallest businesses were more likely to rate their overall experience positively: amongst those with turnover up to £85k, almost four in five (78%) gave a positive rating compared with seven in ten (69%) for businesses with turnover above £85k. Businesses that only interacted with HMRC online were also more likely to rate their overall experience positively (81% compared with 61% who interacted online and by telephone).

5.4.1 Dimensions of customer experience

Small Businesses who had interacted with HMRC were asked to rate HMRC on nine specific customer experience dimensions. In 2022, there was a decline in positive ratings for three of the dimensions, and an increase in negative ratings for one of the dimensions. Ratings for other dimensions remained unchanged:

• time taken to reach end result: Small Businesses were asked whether the time taken to reach the end result was acceptable. Just over three in five (62%) gave a positive rating, which was a decrease from 67% in 2021

• HMRC systems prevented mistakes: Small Businesses were asked whether HMRC had systems which were good at preventing mistakes. Just over half (54%) gave a positive rating, which decreased from 59% in 2021. Negative ratings (14%) were also higher compared with 2021 (10%)

• ease of finding information: Small Businesses were asked about how easy or difficult it was to find any information on tax, benefit, and credit issues from HMRC. Three in five (60%) gave a positive rating, which decreased from 64% in 2021

5.5 Views on administration of the tax system

Small Businesses were asked about their views on the administration of the tax system.

Small Businesses were asked whether HMRC treated their business fairly, and over eight in ten (84%) gave a positive rating, an increase compared to 80% in 2021. This increase was present across all types of businesses.

Small Businesses were asked how easy they found it to deal with business tax issues over the last 12 months. Positive ratings were unchanged at 73% in 2022 compared with 2021.

Small Businesses were asked whether they agreed that information or services were tailored to their business in the last 12 months. Positive ratings were stable at 55% in 2022 compared with 2021.

Small Businesses were asked whether they agreed that HMRC systems integrated well with the way their business managed its tax affairs. Positive ratings were stable at 72% in 2022 compared with 2021.

5.6 Experiences of conducting tax administration (qualitative research)

5.6.1 Drivers of easier tax administration experiences

The qualitative research found three key factors increased ease of tax administration for Small Businesses. These were: practise and experience, software, and use of agents.

• practice and experience

  • repeat, familiar or automated processes presented fewer challenges to Small Businesses. This was because they had developed mechanisms to complete them and were more confident in getting tax administration right due to repeat experiences completing such tasks. However, despite practise, Small Businesses found import and export tax, as well as Corporation Tax, difficult

“Initially [when I first started doing tax administration] I was not very confident, I was a bit flummoxed, but not anymore.” (10 to 19 employees)

• software

  • Small Businesses felt software had made tax administration easier by simplifying and automating processes. Accounting software can be cloud based and Small Businesses described how this meant software can be accessed anywhere and used by multiple users simultaneously (including agents)

“I find by using an app that makes it simple because it's data, it's there. I can access it quickly and easily.” (1 to 9 employees)

”[Software] is very user friendly, very visual. It's got graphs, a dashboard screen, you can have a quick overlook of your business, it's really easy to run reports. It's live, so as you put an invoice on...it's uploaded automatically to [software]." (10 to 19 employees)

• Small Businesses were often concerned they might fail to stay on top of latest tax requirements. They said software was able to mitigate this worry by notifying them of changes and updating processes automatically

• it was also noted that improvements had been made to HMRC online accounts and forms, which had made tax administration easier

• use of agents

  • Small Businesses who used agents were generally happy with their work, and described a range of ways they increased the ease of tax administration

  • they can outsource the most difficult and time-consuming tax administration to agents

  • agents are qualified to provide support on legal and technical tax administration, so can manage tax administration well and make few mistakes

  • they offer valued reassurance to Small Businesses with low confidence in their ability to get tax right and concerns about the consequences of getting it incorrect

“It is all the details about allowances, I just do not know about it and I do not have time to learn about it. My accountant can advise and he gives me peace of mind.” (Self employed)

• a source of tailored and personalised advice, and can handle difficult to resolve tax administration errors on Small Businesses behalf

• provide advice and training on accounting software packages

As well as increasing the ease of tax administration, Small Businesses also described other benefits of using agents:

• are easy and reliable to work with, and software has made sharing information with agents easy and quick

• outsourcing increases the time Small Businesses have to focus on the business and reduces the time spent learning about tax administration (which they might find difficult and uninteresting)

• agents can feel relatively low cost compared to investing in in-house resource or accounting software

• flag upcoming tax liabilities which helps with financial planning in advance of deadlines

• agents can ring HMRC on Small Businesses behalf, saving the business time waiting on the phone themselves, and help resolve errors

“You get a resolution quicker." (Self employed)

However, it is important to note that as well as improving ease and providing a range of benefits, Small Businesses also expressed some concerns and drawbacks of using agents:

• agents are an additional business cost

“It's expensive. It is costly.” (1 to 9 employees)

• agents can be unresponsive and slow to communicate, or they prioritise bigger businesses, which means Small Businesses need to chase agents to get answers to their questions or ensure work is completed

“There can be a little lag when they're busy but I just phone them up and give them a push and they get it done.” (1 to 9 employees)

• agents can make mistakes and there were concerns about Small Businesses becoming liable

• Small Businesses lack the same level of financial oversight of their company that they would have if tax administration was done in-house. They also lack knowledge of tax administration, which would be problematic if they need to start doing tax administration in-house

“Pros [of using an agent]: I have nothing to worry about. Cons: I am obviously out of the loop on info [about tax administration] I probably should be aware of.” (Self employed)

• agent can have in-depth knowledge of Small Businesses and as a result Small Businesses were nervous about this knowledge being lost when agents retire or leave the practice

• there was a perception that agents may over-complicate tax affairs

• occasionally HMRC contacts both the business and agent simultaneously, and in other instances only the agent, so allocation of responsibilities can become muddled or confused

• agents can pressure Small Businesses to start using accounting software which Small Businesses do not appreciate if they are happy with their current systems or are not digitally confident

5.6.2 Drivers of more difficult tax administration experiences

Certain things made tax administration more difficult for Small Businesses. Small Businesses were worried about getting tax administration wrong and the consequences associated with this, and this made tax administration more onerous for them. The tone of HMRC communications could feel demanding and added to their worries. Small Businesses also found it difficult to contact HMRC for reassurance that they had completed their tax administration correctly, and delays in getting issues resolved heightened concerns about getting tax wrong. Small Businesses also thought HMRC were quick to fine Small Businesses for errors.

“It's always a bit of a nightmare, a bit stressful because you worry about whether you're getting the damn thing right!” (Self employed)

“The letter you get to tell you it’s time to pay your corporation tax doesn't say ‘Dear (organisation), it’s time to pay your corporation tax….it always feels like it’s a demand rather than a letter reminding you to do something.” (1 to 9 employees)

Small Businesses preferred to resolve tax administration online where possible, rather than calling the telephone helpline, as they can resolve errors more quickly and independently. However, Small Businesses said rectifying errors online through the HMRC online account could be difficult or impossible, and that this can result in them needing to call the helpline. Small Businesses did not recall using Webchat or Virtual Assistant to resolve errors.

Small Businesses also found tax administration difficult and more burdensome when they had to learn new types of administration. New tax administration could be a new tax to the business and/or new tax administration processes introduced by HMRC. Small Businesses felt GOV.UK webpages did not always improve ease of dealing with new tax administration because it lacks digestible information and uses jargon, it can be hard to navigate, and information is general and not able to answer specific and complex tax queries. This leads Small Businesses to find support elsewhere and feeling less confident dealing with tax administration.

“It's just a bit of lack of self confidence in doing it because I'd never dealt with anything like that before here.” (10 to 19 employees)

“A lot of the [HMRC] webinars actually knock my own personal confidence, because they talk to you as if you already know what they're saying.” (1 to 9 employees)

“Sometimes I feel they're written [the GOV.UK webpages] by people who already know it, which obviously they are, but they're being read by somebody who doesn’t.” (1 to 9 employees)

Small Businesses also found tax administration difficult when experiencing errors. Small Businesses did not always feel they could rely on the methods available to them to resolve errors and as a result, had often tried multiple channels to resolve errors as they had not found one that routinely worked well. Methods to resolve errors included: calling or writing to HMRC, resolving it on their Government Gateway account, asking their agent to resolve the error (this might be after attempting to resolve the error themselves), asking their agent for advice, reporting errors through the complaints channel on their Government Gateway, and ignoring errors when it was known that it would resolve itself.

Small Businesses primarily resolved errors by calling the HMRC helpline or asking agents to resolve it for them. Where Small Businesses had agents, but resolved errors themselves, they said they did this because they wanted to understand why an error had been made and to save money on agent fees.

”[Tax administration is] quite easy until there's a problem and then it becomes extremely difficult.” (1 to 9 employees)

Small Businesses described frustrations when resolving errors using the telephone helpline, which was one of the most common routes Small Businesses said they used to resolve errors. When resolving errors using the HMRC telephone helpline, Small Businesses described feeling the need to follow up with HMRC to check progress as they were unsure of the actions being taken by HMRC. This was burdensome and time consuming. They also described being in contact with a different call handler each time, which meant they needed to re-explain the error.

“To this day I've emailed them about four or five times, I've contacted them twice and got fed up trying to phone them.” (Self employed)

Small Businesses reported experiencing a range of errors. Examples of errors experienced include: HMRC incorrectly requesting payments, HMRC notifications that returns have not been submitted or payments not made when they have, HMRC allocating payments to wrong tax years, the online HMRC account showing different information to letters, Small Businesses making errors such as submitting a payment twice or incorrect information, and agents making errors such as paying money into the wrong HMRC account.

A common error Small Businesses found easy to resolve was HMRC incorrectly asking for payments or claiming payments had not been made. This usually took one contact with HMRC to resolve. They also found resolving late payments through setting up payment plans straightforward.

A common error that Small Businesses found difficult to resolve was when their online HMRC account showed incorrect information, such as incorrect amounts of VAT showed as being owed. This often took numerous weeks or months to resolve or was left unresolved.

“In the end it got to the stage they rectified their glitch and we paid but it was rather a long-winded affair to get to that point.” (1 to 9 employees)

5.6.3 Suggestions for how HMRC could improve ease of tax administration

Small Businesses reported a range of things HMRC could do to increase the ease of tax administration. They described ways HMRC could improve the experience of contact with them:

• create the ability for Small Businesses to email HMRC as this would make contact more flexible compared to calling the helpline and create a record of communication

• reassure Small Businesses that HMRC are following up on reported errors to prevent Small Businesses feeling the need to chase HMRC to ensure errors are resolved

• allow Small Businesses to be able to re-contact the same call handler to minimise Small Businesses repeating the issue(s) discussed with previous call handlers

• HMRC should alter the tone of HMRC communications (e.g. letters) to soften language which would reduce worries about making errors and the consequences

Small Businesses also described things HMRC should do to make online services simpler and easier to use:

• make online resources, such as GOV.UK and webinars, more accessible to those not trained in finance by reducing jargon and not assuming Small Businesses have sufficient knowledge of tax administration

• ensure Small Businesses can correct errors simply on their Government Gateway account to reduce calls to the helpline and increase ease

• ensure Small Businesses are aware of free online resources they can use to can calculate their own taxes

5.7 Perceptions of HMRC’s reputation

This section examines Small Businesses’ broader views of HMRC as an organisation. They were asked to rate HMRC on the following:

• efficient: HMRC is an efficient organisation that does not waste money

• effective: HMRC ensures all its customers pay (receive) the correct amount of tax

• fairness: HMRC applies penalties and sanctions equally for all of its customers

• overall confidence: how confident are you in the way HMRC are doing their job

• trust: HMRC is an organisation that I trust

As in previous years, ratings for these dimensions of reputation were lower than the dimensions of customer experience. Higher proportions of respondents gave neutral ratings or did not know in response to the dimensions of reputation compared with the customer experience dimensions.

5.7.1 Efficiency and effectiveness

Just over a third (35%) of Small Businesses gave a positive rating for HMRC’s efficiency and almost a quarter (23%) gave a negative rating. The proportion that gave a positive rating that HMRC was efficient was in line with 2021 and 2019. However, negative ratings increased from 20% in 2021 to 23% in 2022.

Just over half (54%) of Small Businesses gave a positive rating for how effective HMRC was. This was in line with 2021.

5.7.2 Fairness in applying penalties and sanctions

Two in five Small Businesses (39%) gave a positive rating for how HMRC applied penalties and sanctions equally, and 18% gave a negative rating. These ratings remained in line with ratings from 2021. Positive ratings of HMRC applying penalties and sanctions equally were associated with a positive rating of overall experience (47% gave a positive rating for both) and trust in HMRC (50% gave a positive rating for both).

5.7.3 Overall confidence in HMRC

Just over half (54%) of Small Businesses gave a positive rating of their confidence in HMRC in 2022. This was a decrease from 63% in 2021. One in seven (15%) Small Businesses gave a negative rating, an increase from 2021 (10%).

Ratings of confidence, efficiency, effectiveness and fairness were closely associated, as in previous years.

5.7.4 Trust in HMRC as an organisation

In 2021, a new question was introduced asking respondents whether HMRC was an organisation they trust. Almost seven in ten (68%) Small Businesses gave a positive rating for their trust in HMRC in 2022, in line with 2021. One in ten (10%) gave a negative rating also in line with 2021.

5.7.5 Trust and Fairness

New questions were introduced in the 2022 survey asking for views on aspects of trust and fairness in HMRC. Small Businesses were asked to rate HMRC on the following:

• reputation: HMRC is an organisation with a good reputation

• communication: HMRC communicates in a way that is easy for me to understand

• professional: HMRC staff are professional

• powers: HMRC uses its powers in a very forceful way

• mistakes: HMRC would admit if they made a mistake

Of all Small Businesses:

• 56% agreed and just over one in seven (17%) disagreed that HMRC is an organisation with a good reputation

• just over three in five (62%) agreed and 15% disagreed that HMRC communicates in a way they understand

• 83% agreed and 5% disagreed that HMRC staff are professional

• over two in five (45%) agreed and just over one in ten (12%) disagreed that HMRC use their powers in a very forceful way

• over two in five (43%) agreed and just over one in five (22%) disagreed that HMRC would admit if they made a mistake

5.8 Perceptions of compliance

The 2022 survey looked at tax evasion, asking for views on the acceptability and extent of tax evasion and how effective HMRC is in preventing or reducing the extent of tax evasion

5.8.1 Acceptability and extent of tax evasion

Small Businesses were asked about the acceptability of tax evasion (where there is a deliberate attempt not to pay the tax which is due). The majority (86%) of Small Businesses felt that tax evasion was never acceptable. 2% of Small Businesses said tax evasion was always acceptable.

Small Businesses were asked whether they thought tax evasion was widespread amongst businesses. Just over a third (35%) said this behaviour was widespread.

6. Agents

Agents are paid by customers – individuals or businesses – to represent them in dealings with HMRC. Just over half of Agents surveyed classified their business as an accountancy firm (52%), 32% as bookkeeping firms and 16% were other types of Agents such as payroll bureau, tax advisor or VAT consultant. Two thirds were members of a professional organisation (64%). More than half (55%) had a turnover of 60k or below whilst a third (33%) had a turnover of 60k or above. Half had no employees (49%), a quarter (26%) had one to 4 employees, and 21% had 5 or more employees. VAT, Income Tax though Self Assessment and PAYE for employers remained the most common taxes with which surveyed Agents dealt with.

6.1 Channels used to interact with HMRC

Agents were asked about the ways in which they had interacted with HMRC on behalf of clients in the previous 12 months. Dealing with HMRC was defined as where they had made contact with HMRC, received information from HMRC or made use of HMRC’s online services.

Channel use remained similar to 2021. Almost all Agents used an online service (97%), the same proportion as in the 2021 and 2019 surveys. Agents used the following channels to contact HMRC:

• nine in ten (92%) of Agents searched for information on HMRC’s webpages

• almost nine in ten (88%) used HMRC online services

• three quarters (75%) had contact by telephone

• almost three quarters of Agents made contact both online and by telephone (74%)

• almost a quarter used online channels only (23%)

Agents who were negative about HMRC across a range of measures, including the ease of acting on behalf of their client, their overall experience of HMRC, and whether services were tailored, were more likely to have had to contact HMRC by telephone because they could not resolve their issue online.

Agents were asked if they had contacted HMRC online and by telephone in the last 12 months due to an issue which could not be resolved online. Six in seven (86%) said they had contacted HMRC both online and by telephone when their issue could not be resolved online. Three quarters (76%) reported they had done so multiple times and 9% reported this had only happened once.

6.1.1 Channel preferences

In 2022, new measures were introduced to understand preferences for channels used to contact HMRC. Agents were asked about the ways in which they would prefer to interact with HMRC to manage their clients’ day to day tax affairs (e.g. finding out, amending, querying their client’s tax code or looking for information on a change in tax rates), and to solve a problem in the future (e.g. if they thought their client was paying too much tax and wanted to check it was correct). Respondents could indicate a preference for more than one channel.

To manage their clients’ day to day tax affairs in the future, of all Agents:

• four in five (81%) would prefer to contact HMRC via telephone

• 63% would prefer to contact HMRC via an Agent Service Account

• 57% would prefer to contact HMRC via email

• Fewer than half (47%) said their contact preference would be via live webchat with a HMRC representative

• four in ten (43%) said via post

To solve a problem for their client in the future, of all Agents:

• Six in seven (85%) Agents would prefer to contact HMRC via telephone

• three in five (59%) would prefer to contact HMRC via email

• just over half (52%) would prefer to contact HMRC via an Agent Service Account

6.1.2 Rating of services

Agents were asked to rate their experience of using HMRC’s webpages, other online services and telephone helplines. Ratings of online and telephone services were in line with 2021 findings:

• webpages: 61% of Agents who had used HMRC webpages on GOV.UK rated them positively in 2022, in line with 2021. Agents who interacted with HMRC only through online channels were more likely to give a positive rating (76%) for webpages than those who used both online and telephone channels (56%)

• other online services: Agents’ ratings of other HMRC online services remained higher than 2019 ratings (61%) and in line with 2021 at 65%. Bookkeeping firms continued to be more likely to give a positive rating for other helplines (78%) than accountancy firms (60%) or other types of agents (60%)

• Agents’ Dedicated Line: 38% of Agents who had used the Agents Dedicated Line rated them positively in 2022, in line with 2021

• other helplines: 28% of Agents who had used other helplines rated them positively in 2022 in line with 2021

6.2 Customer experience

Agents were asked to rate their overall experience of interacting with HMRC based on all of their interactions over the last 12 months. Fewer than half (45%) gave a positive rating, in line with 2021. A quarter (26%) of Agents rated their overall experience negatively, an increase compared with 2021 (22%). This increase was driven by Agents with turnover above £60k, with their negative ratings increasing from 31% in 2021 to 39% in 2022.

6.2.1 Dimensions of customer experience

Agents who had interacted with HMRC were asked to rate HMRC on nine specific customer experience dimensions. In 2022, there was a decline in positive ratings for two of the following dimensions, and an increase in negative ratings for two of the following eight dimensions. Ratings for other dimensions remained unchanged:

• time taken to reach end result: Agents were asked whether the time taken to reach the end result was acceptable. Just over a quarter of Agents surveyed (27%) gave a positive rating in 2022, a decrease from 31% in 2021. Negative ratings increased from 45% in 2021 to 50% in 2022

• getting tax transactions right: Agents were asked how good HMRC was at getting transactions right. More than half (53%) of Agents gave positive ratings in 2022, a decrease from 58% in 2021

• HMRC systems prevented mistakes: Agents were asked whether HMRC had systems which were good at preventing mistakes. Almost three in ten (28%) Agents gave negative ratings, an increase from 24% in 2021

6.3 Views on administration of the tax system

Agents were asked about their views on the administration of the tax system.

Agents were asked how easy they felt it was to deal with tax issues on behalf of their clients over the last 12 months. Over four in ten (44%). Agents gave a positive rating for ease of dealing with tax issues on behalf of their clients in 2022. This was in line with 2021 and a return to the level seen in the 2015 baseline survey (46%). Agents with turnover of below £60k were more likely (56%) to give positive ratings for ease than those with turnover above £60k (31%). Ratings of ease were higher for Agents who had only interacted with HMRC online (72%) compared with those who interacted via online channels and telephone (37%).

Agents were asked whether they agreed with the statement that HMRC treated agents’ clients fairly over the last 12 months. Almost seven in ten (68%) gave a positive rating in 2022, a decline from 71% in 2021. This decrease in positive ratings was driven by Agents with turnover of above £60k whose positive ratings declined from 65% in 2021 to 58% in 2022.

Agents were asked whether they agreed with the statement that information and services were tailored to the agent and the agent's clients in last 12 months. Two in five (40%) gave a positive rating in 2022, in line with 2021.

6.4 Perceptions of HMRC’s reputation

This section examines Agents’ broader views of HMRC as an organisation. They were asked to rate HMRC on the following statements and questions:

• efficient: HMRC is an efficient organisation that does not waste money

• effective: HMRC ensures all its customers pay (receive) the correct amount of tax

• fairness: HMRC applies penalties and sanctions equally for all of its customers

• overall confidence: how confident are you in the way HMRC are doing their job

• trust: HMRC is an organisation that I trust

6.4.1 Efficiency and effectiveness

One in five (19%) Agents gave a positive rating for HMRC’s efficiency, in line with 2021. Negative ratings increased from 41% in 2021 to 46% in 2022.

Ratings of HMRC’s effectiveness declined from 54% in 2021 to 50% in 2022.

6.4.2 Fairness in applying penalties and sanctions

Half (49%) of Agents gave a positive rating for how HMRC applied penalties and sanctions equally, a decline since 2021 (53%) Positive ratings of HMRC applying penalties and sanctions equally were associated with a positive rating of overall experience (58%) and trust in HMRC (62%).

6.4.3 Overall confidence in HMRC

Just over a third (35%) of Agents gave a positive rating of their confidence in HMRC, a decline since 2021 (43%). This decline was present across the majority of key sub-groups with a bigger drop noted amongst Agents with turnover up to £60k (51% in 2021 vs. 42% in 2022) compared with Agents with a turnover over £60k (33% in 2021 vs. 27% in 2022)

6.4.4 Trust in HMRC as an organisation

More than half (55%) of Agents gave a positive rating that HMRC was an organisation they trust. This was a decrease from 61% in 2021, driven most strongly by Agents with turnover over £60k whose positive ratings fell from 55% in 2021 to 49% in 2022. Negative ratings also increased from 14% in 2021 to 19% in 2022.

6.4.5 Trust and Fairness

New questions were introduced in the 2022 survey asking for views on aspects of trust and fairness in HMRC. Agents were asked to rate HMRC on the following:

• reputation: HMRC is an organisation with a good reputation

• communication: HMRC communicates in a way that is easy for me to understand

• professional: HMRC staff are professional

• powers: HMRC uses its powers in a very forceful way

• mistakes: HMRC would admit if they made a mistake

Of all Agents:

• 37% of Agents gave a positive rating to the statement HMRC is an organisation with a good reputation while almost a third (31%) gave a negative rating

• two fifths (40%) gave a positive rating to the statement HMRC communicates in a way that is easy to understand while three in ten (30%) gave a negative rating

• seven in ten (70%) gave a positive rating to the statement HMRC were professional in the last 12 months while 12% gave a negative rating

• over two fifths (45%) gave a positive rating to the statement HMRC uses its powers in a very forceful way while 15% gave a negative rating

• just over a third (35%) gave a positive rating to the statement HMRC would admit if they made a mistake while a third (33%) gave a negative rating

6.5 Perceptions of compliance

As stated above the survey looks at different aspects of compliance. The 2022 survey looked at tax evasion, asking for views on the acceptability and extent of tax evasion. The survey described tax evasion as individuals and businesses who try and reduce the amount of tax they have to pay by not declaring all their income to HMRC.

6.5.1 Acceptability and extent of tax evasion

In 2022, nine in ten (90%) of Agents said that tax evasion was never acceptable. Almost half of Agents (48%) thought that tax evasion was widespread in 2022.

1. Channels refer to the ways in which customers interact with HMRC, these include online such as GOV.UK webpages, Personal or Business Tax Accounts, telephone, postal, face to face, email and text communication. ↩