Transforming Tax: Measuring the Impact of HMRC's Modernisation Efforts

Challenge

Researching the impact of service modernisation on customer experience is complex. It requires capturing accurate data on digital interactions, overcoming technical limitations, ensuring data privacy, and addressing diverse customer needs. Furthermore, the rapid pace of technological change demands continuous adaptation of research methodologies.

HMRC sought to understand the real-time, longitudinal impact of its Tax Administration Strategy (TAS) reforms on customer experience. Our challenge was to develop and test a robust methodology that could capture nuanced data over time and provide actionable insights into the effectiveness of reforms.

Approach

Our approach was multifaceted:

1. Desk-Based Scoping: We began with an extensive review of existing literature and data sources to identify potential methodologies.
2. In-Depth Interviews: Engaging with research design and tax experts, we conducted detailed interviews to gather expert opinions and insights.
3. Focus Groups: We facilitated focus groups with HMRC customers to understand their perspectives of the TAS reforms.

Our innovative approach was characterised by:

• Real-Time Data Collection: Implementing advanced data collection techniques to gather real-time, longitudinal data.
• Customer-Centric Focus: Prioritising the customer experience to ensure the reforms' impact was accurately captured and understood.
• Expert Collaboration: Leveraging the expertise of leading researchers and tax professionals to refine our methodology and ensure robust results.

Outcome

The research provided HMRC with several key outcomes.

Methodological Recommendations: It highlighted the need for a mixed approach to data collection, recommending a cross-sectional design for customers with low tax complexity and a longitudinal design for those with high tax complexity.

Customer Insights: The study highlighted the diverse experiences of different customer segments, emphasising the need for tailored approaches to both data collection and service delivery.

Actionable Insights: Finally, the insights gained from the study identified areas of ‘success’ and ‘opportunity’ in finalising an approach to measure the effectiveness of reforms in enhancing overall customer experience.

Read the full research report here.