Research and analysis

tCCM Evaluation Qualitative Research Report

Published 21 September 2023

Qualitative research with Mid-sized Businesses and tax agents.

HM Revenue and Customs (HMRC) research report number: 727

Research conducted by Ipsos in March 2023. Prepared by Ipsos (Amrita Sood, Shahil Parmar, Jacob Bellamy) for HMRC.

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

1. Acknowledgements

Ipsos would like to thank the mid-sized businesses and tax agents who participated in the research. We greatly appreciate the support of HMRC in explaining key processes and sharing their expertise throughout the project.

2. Glossary and abbreviations

This report uses terminology and abbreviations that are explained below.

Term	Definition
Customer Compliance Managers (CCMs)	A senior professional assigned to each of the UK’s largest or most complex businesses by HMRC. Their primary role is to make sure businesses pay the correct amount of tax, at the right time.
Healthy Tax Administration System (HTAS)	A Healthy Tax Administration System is defined by HMRC as one where revenue due is collected to fund essential public services, it is easy to pay the right tax, and the tax system is demonstrably fair and is perceived as such. Outcomes of a Healthy Tax Administration System are assessed via five outcome measures. These are: improved compliance; improved customer experience; reduced customer costs; reduced HMRC costs; and increased trust. Improved customer experience, reduced customer costs and increased trust were the focus of this research.[footnote 1]
Mid-Sized Business (MSB)	A mid-sized business is defined as having above £10 million in turnover, and at least 20 employees. There is some overlap with small and medium-sized enterprises (SMEs) at the lower scale, and with large businesses at the top end (where defining features are persistent technical complexity).
Tax agent	A tax agent is someone MSBs authorise to communicate with HMRC on their behalf regarding their tax affairs.
temporary Customer Compliance Manager (tCCM)	A new initiative trialled by HMRC that offered a small number of Mid-sized Businesses (MSBs) time-limited support. The tCCM model provided additional one-to-one support to MSBs with complex requirements. Once appointed to a customer, the tCCM acted as the nominated point of contact in HMRC. They worked alongside other tax specialists in the department to progress and resolve any tax issues or queries the business may have had.

3. Executive summary

3.1 Introduction and methodology

HM Revenue and Customs (HMRC) commissioned Ipsos to conduct research to evaluate the effectiveness and impact of the temporary Customer Compliance Manager (tCCM) model in providing support to mid-sized businesses (MSBs). The findings were compared against 3 of HMRC’s Healthy Tax Administration System (HTAS) outcome measures. These were improved customer experience, reduced customer costs, and increased trust.

The MSB Customer Survey 2021 highlighted that there was particular interest in improving the experiences of MSBs interacting with HMRC.^{[footnote 2]} For this purpose, a tCCM model was developed to support this customer group. The trial of the tCCM model was introduced in January 2022 and ended in December 2022.

The aim of this research was to understand:

• impact of the tCCM model: to explore what effects the tCCM model had on customer experience for MSBs and tax agents, the impact on MSBs’ ability to manage tax affairs, and effects on growth

• impact of the tCCM model on perceptions of HMRC: to identify what impact the tCCM model had on the perceived trustworthiness and reliability of HMRC and the MSB directorate

• scope for improvement to the tCCM model: to understand why or why not businesses chose to work with the tCCM model, their overall perceptions, and what they might change

The research consisted of 27 in-depth interviews with businesses and tax agents, each lasting between 45 and 60 minutes. Businesses made up 20 of the interviews, with 19 of these having participated in the tCCM model and 1 having been invited to participate in the model but declined. The remaining 7 interviews were with tax agents, due to an interest in understanding their experience of working with the relevant client group. Of these, 3 tax agents had worked with MSBs who had a tCCM, while 4 worked with businesses without a tCCM.

3.2 Key findings

The findings in this report refer to the experiences, perceptions, and opinions of the 20 businesses and 7 tax agents who took part in qualitative in-depth interviews. Sampling was conducted by quotas to provide coverage of key groups of interest (see section 2.3, Methodology). Qualitative research is not designed to be statistically representative. The qualitative findings presented in this report reflect only the perspectives of those interviewed.

Businesses generally had poor experiences of HMRC interaction before the tCCM model

MSBs generally felt that their experience of HMRC’s service before the tCCM model was poor. Interviewees highlighted a sense of disconnection between HMRC and their business, often driven by a lack of clear communication. Businesses noted that poor communication had the effect that they needed to spend more time dealing with their tax affairs. MSBs generally had a low level of trust in HMRC’s reliability and responsiveness, and more trust in its core tax-collection operations. Some businesses, especially those experiencing difficulty managing their tax affairs, found their interactions with HMRC unhelpful and unsupportive.

Not all businesses perceived their interactions with HMRC negatively. This depended on the extent and complexity of their outstanding tax issues. Businesses with fewer outstanding tax issues tended to view HMRC more favourably. These businesses spent less time interacting with HMRC and were more likely to describe their relationship as professional. Reasons for this included strong HMRC staff expertise and courteous service.

Businesses’ needs from the tCCM model varied considerably

Businesses’ level of internal expertise in tax matters, and the complexity of their tax affairs, affected their use of the tCCM model. Businesses using the tCCM model fell into three categories according to their level of tax expertise and current support needs, as follows:

• businesses in crisis, where considerable difficulties in managing tax affairs were impacting cash flow

• businesses facing uncertainty, where outstanding tax issues posed no cash flow threat but did create uncertainty

• businesses planning for growth, where outstanding tax issues were minimal, and use of the tCCM model centred on future planning

These differences also accounted for differing perspectives on HMRC prior to involvement with the tCCM model. Businesses in crisis and businesses facing uncertainty were more likely to hold negative views of HMRC, while those planning for growth generally had a more neutral or positive perspective.

Participation in the tCCM model helped businesses manage their immediate tax issues and improved perceptions of HMRC

Most businesses noted that the tCCM model helped them address their outstanding tax issues. Working with their tCCM had simplified communication and enabled them to address issues faster. This reduced uncertainty and led to significant improvements in perceptions of HMRC.

Having a single point of contact was perceived as a key benefit of participating in the tCCM model. Businesses felt that this had simplified communication and given HMRC a more holistic understanding of their business. The tCCMs themselves were the key conduit to improved trust. Some businesses did not extend this trust to HMRC more broadly, while others noted that the tCCM model represented a signal of positive intent from HMRC.

Suggestions for improvement centred on some level of permanence for the tCCM model, or flexible access after the tCCM model

Businesses found it challenging to suggest improvements to the tCCM model, as they generally felt it was working effectively. Furthermore, businesses found that during the tCCM model, HMRC interactions were helpful, trustworthy, and supportive as well as beneficial to their business. There was a desire amongst businesses to maintain the relationship with their tCCM after the end of the tCCM model. This could involve permanently extending the tCCM model or enabling needs-dependent access to the specific tCCM. Other suggestions included extending the tCCM’s powers and clearly defining entry criteria to participation in the tCCM model.

4. Introduction

4.1 Research context

The Mid-sized Business (MSB) Customer Survey 2021 highlighted that there was particular interest in improving the experiences of MSBs interacting with HMRC.^{[footnote 3]} Before the introduction of the temporary Customer Compliance Manager (tCCM), complex MSBs did not have access to dedicated one-to-one Customer Compliance Manager (CCM) support. HMRC conducted a tCCM model test and learn exercise from January to December 2022 to support MSBs through key business events.

During this test and learn exercise, a small number of MSBs were offered additional time-limited one-to-one support through the tCCM. These MSBs typically had greater tax complexity or were going through significant growth/key life events. Once appointed to an MSB, the tCCM would act as the nominated point of contact in HMRC. The tCCM would work alongside other Tax Specialists in the department to progress and resolve any tax issues or queries the MSB may have.

HMRC hoped increased support would improve the customer service provided to MSBs who needed it the most and help them reduce error by ensuring the right response at the right time. The length of time for tCCM support would differ depending on MSB needs. A clear exit point would be agreed during the opening discussion with businesses and kept under regular review.

4.2 Research aims

The aim of this research was to qualitatively evaluate the effectiveness and impact of the tCCM model in providing support to MSBs before any decision was made to implement the tCCM model permanently. The findings were compared against 3 of HMRC’s Healthy Tax Administration System (HTAS) outcome measures which were improved customer experience, reduced customer costs, and increased trust.

The research aimed to understand the below areas.

The impact of the tCCM model. Specifically:

• to explore what effects the tCCM model had on customer experience for MSBs and tax agents

• to explore the impact on MSBs’ ability to manage tax affairs

• to explore the effects on growth

The impact of the tCCM model on perceptions of HMRC. Specifically:

• to identify what impact the tCCM model had on levels of trust in and reliability of HMRC and the MSB directorate

Scope for improvement to the tCCM model. Specifically:

• to understand why or why not businesses chose to work with the model

• businesses’ overall perceptions

• what businesses might change about the model

4.3 Methodology

The research took a qualitative approach, involving 27 in-depth interviews with MSBs and tax agents.

Research method

A qualitative approach was used in order to focus on the detailed experiences and perceptions of each business. In the context of this research, it was used to understand MSBs’ and tax agents’ perceptions and experiences concerning HMRC and the tCCM model in greater depth.

Individual in-depth interviews were conducted amongst representatives from MSBs and tax agents, in a range of positions in their business. Each interview lasted up to 60 minutes. Interviews were conducted via telephone or on Microsoft Teams and took place between November 2022 and February 2023.

Research sampling and recruitment

The sample for the research included two groups: MSBs and agents. The sample of MSBs included three sub-segments of participants. These were MSBs who currently worked with a tCCM, MSBs that had completed work with a tCCM or were nearing completion, and MSBs that declined working with a tCCM.

The sample of tax agents included two sub-segments of participants. These were tax agents working with MSBs who had worked with a tCCM, and tax agents working with MSBs who had not worked with a tCCM but were offered support from the tCCM model.

As this was a qualitative study, it did not use a representative sample of MSBs and tax agents. The research instead used a purposive sampling approach, whereby key criteria were set and participants were recruited by specialist recruiters using a screening questionnaire. The sample for the research was sourced from relevant HMRC sample lists of businesses who had been offered the opportunity to work with a tCCM and who had or had not engaged with the model.

Advance letters and emails were sent to the sample at the start of the research. This was to inform them about the research taking place and to encourage them to take part in the research. It also provided the sample with an opportunity to accept or decline the offer to participate in the research. Reminder emails were sent out in early January 2023 to further encourage participation in the research.

MSBs were offered an incentive of £75 as either a shopping voucher or charity donation. Agents were offered an incentive of £50 as either a shopping voucher or charity donation. Incentives were used to encourage participation in the research and to compensate participants for their time.

Of the 27 participants interviewed, 22 had participated in the tCCM model. More specifically, 15 were MSBs currently working with a tCCM, 4 were MSBs that have completed work with a tCCM or are nearing completion, and 3 were tax agents working with MSBs who have worked with a tCCM. This ensured that the research could evaluate specific perceptions and experiences before and after the tCCM model.

The remaining 5 who had not participated in the tCCM model included one MSB that declined working with a tCCM and 4 were tax agents working with MSBs who declined working with a tCCM. This ensured that the research could evaluate current perceptions and experiences, reasons for not participating in the tCCM model, and perceived impacts of taking part in the model. The final composition of the sample is outlined below.

Table 1: sample composition

Segment	Participated in the tCCM model	Did not participate in the tCCM model
MSBs currently working with a tCCM	15	–
MSBs that have completed work with a tCCM or are nearing completion	4	–
MSBs that declined working with a tCCM	–	1
Agents working with MSBs who have worked with a tCCM	3	–
Agents working with MSBs who haven’t worked with a tCCM	–	4
Total	22	5

Additionally, primary quotas were set to ensure a range of MSBs and tax agents who had worked with a tCCM or had declined working with a tCCM were included in the sample. This was to ensure inclusion of business with a range of experiences relevant to the central aims of the study.

4.4 How to read this report

Terminology such as ‘mid-sized businesses (MSB)’ and ‘temporary Customer Compliance Manager (tCCM)’ has been abbreviated throughout this report to ensure clarity and brevity. Please see the glossary and abbreviations section on page 6 for more details of the terminology used in this report.

Where findings relate to one of HMRC’s three Healthy Tax Administration System (HTAS) outcome measures of focus, this is indicated by its inclusion in a box which begins with HTAS.

Verbatim comments have been included in this report to illustrate and highlight key points and common themes. Where verbatim quotes are used, they have been anonymised and attributed with the following characteristics:

• MSBs: currently working with a tCCM, that have completed work with a tCCM or are nearing completion, that declined working with a tCCM

• tax agents: working with MSBs who have worked with a tCCM, working with MSBs who have not worked with a tCCM

Please note that two or more participants may have the same information in the attributions for their quotes.

The qualitative findings are intended to be illustrative of the range of views held by MSBs and agents, providing insight into their perceptions and experiences. Qualitative research is not designed to be statistically representative. The qualitative findings presented in this report reflect only the perspectives of those interviewed. The qualitative findings presented in this report reflect only the perspectives of those interviewed.

5. Businesses

This chapter explores mid-sized businesses (MSBs’) experiences of the temporary Customer Compliance Manager (tCCM) model, contrasting their perceptions prior to, during, and after the tCCM programme. It considers the relationship between MSBs and HMRC, alongside MSBs’ perspectives on trust, supportiveness, and helpfulness. Variation in businesses’ need for the model is categorised and compared to their perspectives on HMRC.

Businesses were asked about their perspectives on trust, helpfulness, and supportiveness. These were defined by:

• trust: whether HMRC gets things right, its reliability, its responsiveness, transparency, decision making, fairness, consistency and management of customer relationships

• helpfulness: cost, time, and effort it took to deal with businesses’ tax affairs, ensuring that businesses pay and receive the correct amount of tax, providing access to tax specialists needed to resolve complex queries, and clarity of the steps required to meet business obligations and liabilities

• supportiveness: the way the MSB Directorate treats businesses, the professionalism of staff, clarity of when tax-related issues were completed and support to deal with change

Differences between these prescribed definitions and businesses’ interpretation of these frameworks is explored where relevant.

5.1 Businesses before the tCCM model

Before the tCCM model, MSBs’ perceptions of HMRC were more likely to be negative, primarily due to issues around communication. Interviewees highlighted a sense of disconnection between HMRC and their business, often driven by a lack of clear communication from HMRC. Where there was a lack of response from HMRC, MSBs felt unsure of whether HMRC had received their communications or were acting on them. This created uncertainty and resulted in businesses spending time waiting for a response via HMRC helplines, which they often found frustrating.

There was a perceived lack of connection between different sections of HMRC, with issues raised with one department felt to be unacknowledged by another. Businesses noted that they often needed to repeat details to several different individuals via the helplines, causing a lack of continuity in resolving their issue. This led many MSBs to describe low trust in HMRC’s reliability.

Healthy Tax Administration System (HTAS): Customer experience before the tCCM model

Customer experience before the tCCM model was generally negative. Reasons for this included a disconnection from HMRC, a lack of communication and continuity of contact.

Some businesses expressed concerns about which HMRC department to approach to resolve certain issues, especially where there was a need to access specific expertise within HMRC. It was felt that the HMRC support system was sometimes difficult to navigate or too generic.

“Nothing was ever responded to, the helplines aren’t set-up to deal with queries from businesses like ours, so the service was poor.”

MSB that has completed work with a tCCM

“Where do you go when something seems to disappear into a black hole? There needs to be a clear line of communication for somewhere to go when you’re not hearing from them.”

MSB that has completed work with a tCCM

HTAS: Customer trust before the tCCM model

Businesses generally trusted HMRC’s expertise in tax-collection, often referencing their necessity and importance as a government department. However, before participating in the tCCM model, businesses had less faith in HMRC’s reliability, responsiveness, and ability to get things right for customers. Open communication was a key driver of trust amongst businesses, who noted that it was hard to trust HMRC when they did not fully understand their processes.

“There was a pretty low level of trust because it was all done by post. There was no way of knowing whether a letter you’ve sent has reached them, is being dealt with, or is going to be dealt with.”

MSB currently working with a tCCM

Before the tCCM model, MSBs felt that HMRC lacked a holistic understanding of their business. This was further exacerbated by the absence of a single point of contact for their business at HMRC. Many businesses identified this as a key problem in their relationship with HMRC. Without a specific single point of contact through which businesses could interact with HMRC, they were likely to report a lack of continuity in HMRC interactions. This resulted in inefficiencies in communication with HMRC, such as waiting long periods for email replies.

“The issue was that we had no single point of contact. For some basic enquiries we had to go through emails… there was just no ability to interact.”

MSB currently working with a tCCM

Being unable to communicate through a single point of contact led many businesses to describe their interactions with HMRC as unhelpful. It was generally felt that time and money had been wasted with long waiting times on HMRC helplines and needing to communicate with HMRC multiple times to resolve the same issue. However, some businesses noted that when they were able to get to the right HMRC individual, they were often helpful.

HTAS: customer cost before the tCCM model

Businesses tended to perceive a lack of efficiency in their communication with HMRC, due to the need for multiple contacts on a single issue, delays, and repeated follow-up calls. This increased business time spent on HMRC interaction. In the case of one business, direct costs were incurred as they needed to hire an additional temporary employee to help with HMRC communication.

Perceptions of HMRC’s supportiveness depended on each business’s interpretation. MSBs were generally positive about the professionalism and courtesy of HMRC staff despite broader frustrations concerning resolution of outstanding queries. MSBs interpreted the term ‘supportiveness’ as HMRC’s willingness to help them, or feeling that their perspective was understood by HMRC staff. In this context, HMRC were seen as less supportive, especially amongst those businesses with more outstanding tax issues.

“There were a couple of instances where we requested certain things, principally on VAT, and in both instances the requests were rejected and there was no ability to discuss… this was the challenge. If you can speak to someone and explain the situation, they are more supportive.”

MSB that has completed work with a tCCM

Before participating in the tCCM model, perceptions of HMRC were not all unfavourable, with some businesses describing their relationship as professional. Reasons for this included strong HMRC staff expertise and courteous service. Generally, businesses with lower levels of HMRC interaction had more positive perceptions of HMRC. This was because they were less likely to have experienced a crisis, or had fewer outstanding tax problems. These businesses were also more likely to have simple tax structures, or sufficient in-house expertise to limit the possibility for issues.

“We just used them when we needed to, no more than that really.”

MSB that has completed work with a tCCM

“Generally, it was good, I wouldn’t say it was negative in any way, it works for us… We didn’t have any outstanding issues, there wasn’t something we were waiting on or needed immediately.”

MSB that has completed work with a tCCM or is nearing completion

Case study: MSB currently working with a tCCM

This was a larger, privately held MSB with a small number of assets with a high value. When their tax-director joined the business, there was a very large number of outstanding queries with HMRC. The extent of these issues created a poor relationship with HMRC before the tCCM model, with the interviewee specifically referencing the lack of a single point of contact, a lack of holistic understanding, low trust, and the feeling that HMRC treated them with scepticism. However, for one tax regime the business had a nominated inspector, resulting in a more streamlined process. While positive about this specific inspector, the extent of other issues meant this positive perception did not extend to HMRC more broadly.

“It was very disjointed; we really would have benefited from that holistic understanding of the business.”

MSB currently working with a tCCM

5.2 Categorising business need from HMRC

Businesses varied in terms of their levels of internal expertise, and the complexity of their support needs. These variations accounted for some of the differences in how the tCCM model could benefit them. The characteristics of these businesses are examined below, each with a contextual case study.

Businesses in crisis

These businesses were experiencing considerable difficulties in managing their tax affairs. Tax issues were impacting cash-flow, or in extreme circumstances threatening business closure. As such, their use of and benefits obtained from the tCCM model centred on accessing support through a crisis.

Only a few businesses fell into this category but were affected by similar problems. These problems typically consisted of:

• the existence of a complex tax issue, or a tax issue the business had not faced before

• a lack of internal business systems or expertise to resolve the issue

• a ‘snowballing’ of unresolved queries that affected cash flows

Case study: MSB currently working with a tCCM

This MSB was a subsidiary of a large multinational, facing an increased complexity in their tax policy, associated with acquisitions and EU exit. Their tax manager feared the UK business was going to be shut down because of miscommunication between the business and HMRC. The interviewee felt that there was no clearly defined mode of communication with HMRC, and little support was available to improve the business’s understanding of its new obligations. Persistence of issues led interviewee to believe that HMRC was actively looking to damage the business, degrading trust.

“It was stressful. We didn’t know what to expect on a daily basis from HMRC… we were basically having to deal with HMRC on almost a crisis level basis.”

MSB currently working with a tCCM

Unresolved queries meant more frequent interaction between these businesses and HMRC. As they failed to achieve a resolution, trust was lowered. These MSBs also perceived a greater level of disconnection between the business and HMRC as well as the sense that there was also a disconnect between different HMRC departments. They also felt that they were treated with more suspicion.

Businesses facing uncertainty

For these businesses, tax issues did not pose an immediate threat, but they were generally uncertain about the resolution of future tax issues and potential business impacts. Their use of the tCCM model focused on providing reassurance and a sense of certainty. Most businesses found themselves in this category, and generally:

• had solid in-house tax expertise but more complex specific tax issues

• experienced previous difficulties in communicating with HMRC

• felt there was a lack of clarity on how they might solve future issues and low trust in HMRC’s ability to address them

These businesses were less explicitly negative in their perceptions of HMRC before the tCCM model and were more likely to frame their experiences as frustrating. Some businesses in this category were sympathetic to perceived pressures on HMRC, such as regulatory change and resourcing requirements.

‘A lot of time wasted, a lot of time lost, a lot of time waiting to get our money back, and I suppose the interest on that.’

MSB that has completed work with a tCCM

Case study: MSB currently working with a tCCM

This was a MSB experiencing significant organic and inorganic growth, with several operating subsidiaries. They were in contact with HMRC 8 times per week, putting stress on their internal tax team. There was perceived to be a disconnect between different HMRC departments and uncertainty about where to go for specific issues. They described their tax issues as not being significantly difficult and expressed a desire to resolve issues faster through a single point of contact. The business nonetheless found HMRC trustworthy, and noted the general helpfulness of phone operators.

“We paid a VAT amount and it had been allocated to somewhere else… the interactions we had I don’t really have any problems with, it was more about getting to the right person.”

MSB currently working with a tCCM

Businesses planning for growth

These businesses were defined by a lack of outstanding problems, either through simple tax structures or considerable internal expertise. Their reasons for participation in the tCCM model typically centred on anticipated growth or other changes, and the benefits of participation were to assist them with understanding how growth might affect their tax obligations. These businesses generally had less interaction with HMRC before the tCCM model and while participating. They were also more likely to trust HMRC.

“I wanted there to be someone there as an insurance policy for us should any issues arise, or should there be a need to escalate things.”

MSB that has completed work with a tCCM

Case study: MSB currently working with a tCCM

This was a MSB made up of several entities, but no major outstanding tax issues with HMRC. The tax director was highly experienced with tax affairs of businesses in the same sector and of larger scale. Besides regularly sending compliance documents, the interviewee reported that there was little need to interact with HMRC besides a phone call for clarification when necessary. They communicated with their tCCM just once every two months. Expected to use the tCCM model to plan for potential future acquisitions and provide an additional safety net.

“I’ve never really had a problem with it (HMRC). I’ve been fortunate that the companies that I’ve dealt with all take a very proactive approach to tax.”

MSB currently working with a tCCM

Only one business who declined the opportunity to work with a tCCM was interviewed, and it bore similarities to low-use businesses that did participate in the tCCM model. This business had good in-house tax expertise, minimal complexity, and strong communications with HMRC. Following a discussion with HMRC concerning participation in the tCCM model, it was mutually agreed that the business did not stand to benefit from participation. Unlike businesses in the planning for growth category, this business was not looking to grow, and might even expect to scale down, further limiting its use-case for the tCCM model.

“There wasn’t a lot there concerning tax affairs… in terms of our UK operations, we’re massively over-expertised.”

MSB that declined working with a tCCM

5.3 Businesses after the tCCM model

Participation in the tCCM model had an overwhelmingly positive impact on MSBs’ relationship with HMRC. This was driven primarily by the introduction of a single point of contact. This simplified communication, gave the tCCM a holistic perspective on the MSBs’ tax affairs, and improved perceptions of HMRC helpfulness.

HTAS: customer experience after the tCCM model

Customer experience generally improved after the tCCM model. The specific tCCM who was the single point of contact was the key driver of this improvement.

The specific tCCM was the conduit to an improved relationship with HMRC, but the extent to which this expanded to HMRC more broadly varied. Some businesses noted overall improved perceptions of HMRC, while others highlighted that they had a positive relationship somewhat exclusively with the tCCM.

Although most businesses noted that they did not change their tax processes due to the tCCM model, MSBs did appear more proactive in dealing with tax issues. This was because they felt they had a more direct means of communicating with HMRC, were more certain of HMRC action, and had greater trust in HMRC.

“Having someone there who was professional and competent really did change our perspective, that there really are more good people there than we maybe thought.”

MSB currently working with a tCCM

“It (the tCCM model) made it a lot easier because we can see things getting done and responses etc. It is easier to track things and know where we are. We’ve got someone to turn to if you can’t just do the online stuff which doesn’t always give you the answer.”

MSB currently working with a tCCM

Regular communication between the MSBs and the tCCMs acted as a reassurance to MSBs. Businesses felt that their inputs had been acknowledged and made fewer references to the existence of long delays. Communication between the tCCM and separate HMRC directorates made HMRC directorates appear to act in a more unified way. Businesses felt that the tCCM was able to put them in contact with the right specialists at HMRC, reducing time spent on general helplines.

HTAS: customer cost after the tCCM model

There was a general decrease in customer cost after the tCCM model. This was driven by Improved communications and a reduction in time spent on general HMRC helplines.

“I think their [HMRC’s] helpfulness has increased because we now have someone to contact and they get back to us almost straight away. Much more efficient.”

MSB currently working with a tCCM

“Having one point of contact when things come up is invaluable because it’s more efficient. It gives you a sense of comfort because if we raise an issue and he says it is being dealt with, don’t worry about it. Then when we then get the letters from HMRC that we haven’t done something, you just think well that’s OK because we know it’s being dealt with.”

MSB currently working with a tCCM

Businesses did not feel that the tCCM model did, or was able to, help with top-line business growth. However, the tCCM model was generally perceived to free up time and resources for businesses to focus on other areas that would support growth.

“Not sure HMRC are helping us to grow because that is happening anyway. I think they are helping us to understand our obligations.”

MSB that has completed work with a tCCM

HTAS: customer trust after the tCCM model

Most businesses reported an increase in trust in HMRC following the tCCM model. Those that reported less change in trust were generally businesses that had higher levels of trust in HMRC before taking part. The extent to which increased trust in the specific tCCM was extended to HMRC more broadly varied between businesses.

It was unclear whether the improved perception of HMRC would continue after the tCCM model and into the long-term. Many businesses feared a reversion to their previous poor relationship with HMRC, as the increased trust and perceived helpfulness resulted from outstanding issues being resolved during the tCCM model. However, many businesses felt that the tCCM represented a signal of positive intent from HMRC.

“Prior to the involvement with the tCCM model we had no relationship with HMRC, they were perceived as being the enemy. We were the good guys and they were the bad guys. That’s the way we saw it. Now we feel like it’s becoming more like a relationship. We feel we are now more part of a team, that they want to work with us, assist us, with our growth.”

MSB currently working with a tCCM

Participation in the tCCM model improved perceptions of HMRC’s helpfulness. This extended to HMRC more broadly, beyond the specific tCCM, as a result of the helpfulness of HMRC specialists the tCCM had put them in contact with. Interpretations of helpfulness varied, but improvements centred on the tCCM’s ability to resolve outstanding enquiries and save significant amounts of time for the business.

In terms of supportiveness, changes following the model varied by the ways in which participants perceived supportiveness. With the prescribed definition, referencing the way in which the MSB Directorate treated the business, MSBs generally noted that tCCMs and broader HMRC staff were professional and courteous. There was less change from businesses as they generally felt they were treated professionally by HMRC staff before and after the tCCM model.

However, MSBs were more likely to interpret supportiveness in terms of reassurance and communication, which increased because of the tCCM model. tCCMs were described as clear communicators, understanding businesses’ needs and being supportive across a variety of tasks. Businesses felt that the direct, one-to-one relationship contributed to this better understanding. tCCMs were also generally felt to have a strong rapport with businesses, leading MSBs to feel that HMRC was more sympathetic to their perspective.

“When you have a tCCM in place, I think it’s in both parties’ interest to understand what each other wants. If you are fairly open to going through the exercise of having the tCCM model, then I think there is a lot to be gained for both parties.”

MSB that has completed work with a tCCM

5.4 Would businesses recommend the tCCM model?

Most businesses would use the tCCM model again, and all would recommend it to another appropriate business, even if they did not use the model that much. MSBs generally felt that the businesses that would benefit most from a tCCM were those with tax complexity and outstanding issues with HMRC.

“If businesses have ongoing matters with HMRC which are above average in terms of inquiries… then I think having a singular person who can control the deliverables from an HMRC point of view is very useful to have.”

MSB that has completed work with a tCCM

“I would recommend it. It’s a no brainer really. There’s no down-side to it.”

MSB currently working with a tCCM

“[the tCCM model] Needs to be for businesses that have relatively complex tax affairs, and therefore potentially need someone to speak to and facilitate things.”

MSB that has completed work with a tCCM

“Absolutely, yes. I see no reason not to take this approach… To have a point of contact within that organisation [HMRC], it increases the level of trust that I have with them [HMRC] because I have a direct contact, as opposed to the sense of just a generic email address.”

MSB currently working with a tCCM

6. Tax agents

This chapter explores tax agents and their clients’ perceptions and experiences before and after the temporary Customer Compliance Manager (tCCM) model. It considers their and their clients’ relationship with HMRC as well as perspectives on trust, supportiveness, and helpfulness.

6.1 Tax agents before the tCCM model

Tax agents perceived that their clients often felt disconnected from HMRC before the tCCM model, citing frustration with HMRC customer service and the fact that HMRC’s internal systems appeared disjointed. Agents also noted a perceived lack of responsibility and ownership at HMRC from their clients, with communications being sent without knowing whether they had been received or were being processed. This resulted in requests having to be chased up.

“I don’t think there is a relationship which is the problem. How can you have a relationship with a general postal address? It is difficult when you are not speaking to someone you spoke to before that knows you a little bit. It is very difficult to make a relationship with nobody.”

Tax agent working with MSBs who has not worked with a tCCM

Healthy Tax Administration System (HTAS): customer experience before the tCCM model

Tax agents perceived that their clients generally had a negative view of their HMRC relationship and of their customer experience with HMRC before the tCCM model. Some tax agents felt their clients’ relationship with HMRC was distant or non-existent. This was driven by a lack of a main point of contact at HMRC and also a lack of responsiveness which resulted in repeated follow-up.

“Works best when you have to deal with HMRC as little as possible.”

Tax agent working with MSBs who has not worked with a tCCM

Tax agents’ perspectives before the tCCM model varied depending on the types of businesses they represented. However, they tended to be critical of HMRC in terms of trust, helpfulness, and supportiveness. Reasons for this included a perceived sense of fear towards HMRC from their clients, who felt that interaction with HMRC would likely result in additional obligations and, as a result, costs in professional fees and tax. They were also critical of HMRC due to a perceived lack of proactive support from HMRC, and lack of a main point of contact at HMRC.

HTAS: customer cost before the tCCM model

Tax agents perceived a general sense of a lack of efficiency in HMRC due to delays and the need for repeated follow-up. Time spent on this represented a cost to businesses in terms of their time and resources before participation in the tCCM model.

“I don’t think they [clients] have a great opinion and certainly we don’t have the greatest opinion.”

Tax agent working with MSBs who has not worked with a tCCM

HTAS: customer trust before the tCCM model

Tax agents felt their clients’ trust in HMRC was generally low before the tCCM model. Lack of a main point of contact and responsiveness as well as delays and having to follow up were reasons for this.

Agents felt their clients saw HMRC as unhelpful and unsupportive. Reasons for this included a lack of proactive support, long timelines for matters to be resolved, and difficulty making contact with someone in HMRC who could provide help.

“I think a lot of it is the wait. You send something in and you’re waiting for four, five months for a response and by the time you’ve done that the clients have moved [to another tax firm]… it’s hard to go back to them.”

Tax agent working with MSBs who has not worked with a tCCM

6.2 Tax agent involvement in businesses participation in the tCCM model

Tax agents tended to play a key role in determining which businesses should participate in the tCCM model, triaging businesses who they felt would benefit the most. Tax agents therefore tended to play a powerful role as they often decided whether the tCCM model was appropriate for their clients, making recommendations accordingly.

Some tax agents were approached by HMRC to attend an introductory meeting to receive more information about the tCCM model. At this meeting, HMRC outlined the aims and purpose of the tCCM model for MSBs. Tax agents then triaged businesses who they felt would benefit the most to the tCCM model.

Agents tended to triage businesses towards the tCCM model depending on the scope of benefit they expected the business to receive from the model, and their perception of whether their client would qualify for the tCCM model.

“If companies can get named, direct support from HMRC then they generally want it… that’s a prized and quite a useful thing”

Tax agent working with MSBs who has not worked with a tCCM

Some tax agents would encourage their clients to work with the tCCM model. This was even if clients did not want to work with the tCCM model or if it was felt that there was a chance that they would not be accepted to work with the tCCM model. Having a single point of contact who had specialist knowledge and could provide tailored support were reasons for this. A perceived reduction in long waiting times on HMRC helplines and a lack of quick access to specialist support were other reasons for encouraging clients to work with the tCCM model.

Tax agents often perceived the tCCM model as being aimed towards certain types of MSBs. This included MSBs going through growth and those that had lots of separate dealings with HMRC whereby having a tCCM would help coordinate their affairs. There was a perception among some tax agents that some of their clients did not fit into these perceived types of MSB the tCCM model was aimed towards. As a result of this, tax agents did not request a tCCM model for their clients.

For some tax agents their clients typically had only one issue with HMRC. This resulted in tax agents not putting their clients with one issue with HMRC forward for the tCCM model, as they felt it was unnecessary for clients with one outstanding issue.

Some clients were naturally positive about receiving support from HMRC. On the other hand, some tax agents suggested some of their clients may have declined the offer to work with the tCCM model due to the perception that HMRC were seeking more tax through the tCCM model.

Tax agents often had discussions with their clients before their clients accepted the offer to work with the tCCM model. Clients often wanted to know what working with the tCCM model would involve and what it would mean for them. Clients also wanted to understand the pros and cons of working with the tCCM model and whether they were legally obliged to take part.

“There was quite a lot of discussion. Clients wanted to know the pros and cons and whether they were legally obliged to take part and what would it mean for them.”

Tax agent working with MSBs who have worked with a tCCM

6.3 Tax agents after the tCCM model

Tax agents perceived that participation in the tCCM model broadly improved their clients’ customer experience of and relationship with HMRC. Having a single point of contact within HMRC was the main reason for this. This was generally because the single point of contact was perceived to be helpful and professional, as well having a broader understanding of businesses’ tax affairs.

HTAS: customer experience after the tCCM model

Tax agents perceived participation in the tCCM model generally improved their clients’ customer experience of and relationship with HMRC. The main reason for this was having a single point of contact within HMRC.

There was a broad sense that HMRC provided greater help and support to businesses as a result of the tCCM model. Tax agents reported that without the tCCM model they would have had less contact with HMRC and would find it challenging to find someone in HMRC to resolve issues. There would have also been a greater reliance on agents.

HTAS: customer trust after the tCCM model

Tax agents perceived that over time, there was a general gradual increase in their clients’ trust, due to greater rapport and relationship-building with the tCCM. One tax agent noted that trust would not extend to HMRC more broadly and was confined to trust in the tCCM.

Having a single point of contact generally simplified and increased levels of communication. This was often through regular meetings, videocalls and email exchanges with businesses they worked with. Having a single point of contact often helped to save time, a customer cost that would have otherwise been spent finding the right person to speak to in HMRC.

HTAS: customer trust after the tCCM model

Tax agents perceived that over time, there was a general gradual increase in their clients’ trust, due to greater rapport and relationship-building with the tCCM. One tax agent noted that trust would not extend to HMRC more broadly and was confined to trust in the tCCM.

6.4 Would agents recommend the tCCM model?

Tax agents would generally recommend the tCCM model. Reasons for this included having a main point of contact at HMRC who understood their client’s business. The perceived increase in speed at which matters were resolved by HMRC was another reason for recommending the tCCM model.

“Yes, I would definitely recommend it… If HMRC reached out to them and said, ‘You’re eligible. Do you want one?’ Yes, I would encourage them to take that up.”

Tax agent working with MSBs who has not worked with a tCCM

For some agents, willingness to recommend the tCCM model depended on the type of client and circumstances, such as their level of need and nature of issues needing resolution. Furthermore, one tax agent highlighted that they would recommend the tCCM model whilst informing their client that the tCCM model was not a ‘magic wand’ to resolve issues, but rather a means to move things forward.

Case study: tax agent working with MSBs who have worked with a tCCM

This participant was a tax director of a large accounting firm who worked with clients on their tax affairs and interactions with HMRC.

This agent had found that their clients’ customer experiences of interacting with HMRC tended to be negative before the tCCM model. Clients perceived a lack of proactive support from HMRC, lack of a main point of contact, inconsistent service, and a sense that HMRC were disjointed and did not understand their business.

“[describing HMRC service] Intermittent, disjointed, inconsistent, frustrating… Clients would find that they had to explain the same things twice separately to different HMRC people on different occasions because there wasn’t that continuity.”

Tax agent working with MSBs who have worked with a tCCM

The agent noted that after working with the tCCM model, their clients’ experiences of HMRC improved. After the tCCM model, there was a general increase in clients’ perceptions of trust, helpfulness, and supportiveness of HMRC. Having a single point of contact who understood their business and more frequent and consistent communication were reasons for this.

“It was and is a very good initiative. The tCCM has been helpful. I do think it’s been really good; I definitely do.”

Tax agent working with MSBs who have worked with a tCCM

To improve the model going forward, the agent suggested that the tCCM offer should be clearly articulated to businesses, to ensure they understood what was being offered in the model. Another suggestion for improvement was to allow the tCCM to operate for a longer period with each business, or to make it permanent.

7. Scope for improvement

This chapter explores scope for improvement to the temporary Compliance Manager (tCCM) model identified by Mid-sized Businesses (MSBs) and tax agents. It includes reasons for their suggested improvements.

In general, businesses and tax agents found it challenging to suggest improvements to the tCCM model. For some this was because they felt the tCCM model was working well in its current form.

“Well given how helpful it was for us, I’m not sure I could see any improvements.”

MSB that has completed work with a tCCM

Many businesses perceived the tCCM model as highly effective, with suggestions for improvement being to make access to the tCCM permanent for their business, or to make the tCCM available to them in the future, or to make the tCCM model last longer. Reasons for this included the tCCM potentially having a greater understanding of their MSB customer and fostering an in-depth relationship with them, providing a sense of certainty and acting as a safety net.

“I’d probably make it last a little bit longer to get more chance to get that value and for the tCCM to get to know the business more… I think it would generate a better, more in-depth relationship with the tCCM and the company having the tCCM.”

MSB that has completed work with a tCCM

Some businesses suggested flexible access to a tCCM depending on their needs after the conclusion of the tCCM model. There was also a desire to maintain some element of the relationship beyond the initial period of working with the tCCM model. For some, this was to avoid a reversion to the structure of their relationship with HMRC before the tCCM model.

“I think the tCCM model is a step in the right direction, however for larger, complex businesses… it is really to facilitate putting in permanent CCMs for the larger mid sized businesses.”

MSB currently working with a tCCM

Having clearly defined entry criteria alongside more information about the tCCM model offer were other suggestions for improvement. This was because businesses often did not understand what would qualify a business to take part in the tCCM model, or felt that the tCCM model offer was too vague.

“Clients wanted to know the pros and cons and whether they were legally obliged to take part and what would it mean for them.”

Tax agents working with MSBs who have worked with a tCCM

Agents noted that some businesses had expressed concern about additional enquiries and scrutiny from HMRC as a result of participating in the tCCM model. It was suggested that steps could be taken to reduce this perception in any future model.

“There was a lot of concern… are HMRC seeking ‘a bit of fishing expedition’. Were they trying to find a stick to beat them with?”

Tax agents working with MSBs who have worked with a tCCM

Another suggestion for improvement was extending the tCCM’s powers. Several businesses felt that the tCCM’s effectiveness could be improved by providing more power to the tCCM to resolve issues independent of other parts of HMRC.

“If he [the tCCM] had the power to make things happen faster that would be helpful… if he had more clout internally.”

MSB currently working with a tCCM

8. Summary of key findings

8.1 Businesses’ interactions with HMRC before the model were generally, but not exclusively, negative

MSBs generally felt that their customer experience with HMRC before the tCCM model was broadly negative. Participants highlighted a sense of disconnect between HMRC and their business, often driven by a lack of clear communication. Businesses felt that a lack of good communication increased the time it took to deal with their tax affairs, affecting their costs. MSBs generally had a low level of trust in HMRC’s reliability and responsiveness. However, they had more trust in HMRC’s core tax-collection operations. Some businesses, especially those experiencing difficulty managing their tax affairs, found their interactions with HMRC to be unhelpful and unsupportive.

Not all businesses felt their interactions with HMRC were negative. Businesses with fewer outstanding tax issues and lower complexity tended to view HMRC more favourably. These businesses generally had a better HMRC customer experience. These businesses spent less time interacting with HMRC and were more likely to trust HMRC to get things right.

8.2 Businesses’ needs from the tCCM model varied considerably

Businesses’ level of in-house tax expertise, and the complexity of their tax affairs, affected their use of the tCCM model. Businesses using the tCCM model fell into three categories according to their level of tax expertise and current support needs. These categories were:

• businesses in crisis, where considerable difficulties in managing tax affairs impacted cash flow

• businesses facing uncertainty, where outstanding tax issues created uncertainty around future cash flows

• businesses planning for growth, where outstanding tax issues were minimal, and use of the tCCM model centred on future planning

These differences also accounted for differing perspectives on HMRC before involvement with the tCCM model. Businesses in crisis and businesses facing uncertainty were generally more likely to hold negative views of HMRC. Businesses planning for growth generally had a more neutral or positive perspective.

8.3 Participation in the tCCM model helped businesses manage their immediate tax issues and improved perceptions of HMRC

Most businesses noted that their tCCM was able to resolve outstanding tax issues. The tCCM model simplified communication and allowed businesses to address issues faster, reducing associated time and costs. This lowered uncertainty and led to significant improvements in perceptions of HMRC’s customer experience.

Having a single point of contact was perceived to be a key benefit of participating in the tCCM model. Businesses felt that this made communication more direct and gave HMRC a more holistic understanding of their business. This increased customer trust, with the tCCM acting as a direct conduit of this trust. Some businesses did not extend this trust to HMRC more broadly, while others noted that the tCCM model represented a signal of positive intent from HMRC.

8.4 Suggestions for improvement centred on continued access to the tCCM model for businesses that had participated

Businesses found it challenging to suggest improvements to the tCCM model, as they generally felt it was working effectively. Businesses wanted to maintain the relationship with their tCCM or to be allocated a CCM on a permanent basis. If unable to be permanently allocated a CCM, businesses suggested having needs-dependent access to their previous tCCM.

Businesses made clear that they would recommend the model to other similar businesses. Suggestions concerning the implementation of the model included extending the tCCM’s powers and clearly defining entry criteria for participation.

9. Annex 1

9.1 Participant sample

The final composition of the sample is outlined below.

Table 1: sample composition

Segment	Participated in the tCCM model	Did not participate in the tCCM model
MSBs currently working with a tCCM	15	–
MSBs that have completed work with a tCCM or are nearing completion	4	–
MSBs that declined working with a tCCM	–	1
Agents working with MSBs who have worked with a tCCM	3	–
Agents working with MSBs who haven’t worked with a tCCM	–	4
Total	22	5

1. [Building a trusted, modern tax administration system 2020 – GOV.UK] (https://www.gov.uk/government/publications/tax-administration-strategy/building-a-trusted-modern-tax-administration-system) ↩

2. [The Mid-Sized Business Customer Survey 2021 – GOV.UK] (www.gov.uk/government/publications/the-mid-sized-business-customer-survey-2021) ↩

3. [The Mid-Sized Business Customer Survey 2021 – GOV.UK] (www.gov.uk/government/publications/the-mid-sized-business-customer-survey-2021) ↩