Research and analysis

Understanding the use of cash by small and mid-size businesses

This research explored small and mid-size businesses’ behaviour around payment transactions, including barriers to adopting digital payments.

From:
HM Revenue & Customs
Published
24 June 2021

Documents

Understanding the use of cash by small and mid-size businesses

Ref: HMRC research report 616

PDF, 3.92 MB, 96 pages

Details

This research was commissioned to provide up to date robust evidence on small and mid-size businesses’ behaviour regarding payment transactions, including how these have been affected by coronavirus (COVID-19). The core objectives of this research were to:

  • quantify the costs of cash and digital payment transactions for small businesses, including hidden costs relating to administration, storage and processing
  • identify the barriers impeding businesses and individuals from adopting digital payment systems
  • develop a better understanding of the behavioural drivers of cash-based tax evasion and their impact on social norms

A mixed-method approach was taken for this research, consisting of a quantitative survey of 1,227 small businesses and 643 mid-size businesses undertaken between October and November 2020, followed by 29 in-depth qualitative interviews in November and December 2020.

Updates to this page

Published 24 June 2021

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