Impact of a flexible model of calculation for the IYC pilot and future timely payment

Contract summary

Industry

• Research and development services and related consultancy services - 73000000

Location of contract

United Kingdom

Value of contract

£180,000

Procurement reference

CW83149

Published date

16 November 2022

Closing date

19 October 2022

Closing time

5pm

Contract start date

20 October 2022

Contract end date

19 October 2023

Contract type

Supply contract

Procedure type

Call-off from a dynamic purchasing system

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

---

Description

This is a KAI Social Research contract let through the Research and Insights DPS to tender mixed-methods research to explore ITSA customers' views on the impact of a flexible model of calculation for the in-year calculation pilot, and future timely payment.

From April, a three year in-year calculation pilot (IYC) commences; this will build insight and enable the testing of policy/system design choices for future timely payment (TP) (bringing the calculation and payment of tax closer to the point where income or profit arises for taxpayers, paying tax based in their current year position). Customers, through the TP CfE, challenged a 'one size fits all' model of TP. This research will help determine policy/design options of a flexible model which can be tested through the IYC pilot, to help build a calculation system which supports customers whilst realising wider government benefits.

As part of the Tax Administration Strategy (TAS), we published a CfE on TP, exploring perceptions around the benefits/challenges of TP. Many respondents highlighted the need for a flexible model of TP, which reflected the diversity of the SA population.
This view was echoed by internal research which found that customers would broadly support and engage with TP if there was flexibility, control, and structure. This research proposes a deeper dive into what these elements could look like practically for customers, and how this may differ across populations/customer groups/business models.

The IYC pilot runs for 3 years, and through it we will be able to test policy choices and mitigation. The first year of the pilot involves detailed investigation, internal and external co-design activity to establish optimal design, delivery, evaluation, and evidence requirements. The timing of this research will compliment this phase, allowing maximum input into design

This research will first collect quantitative data on ITSA customers' experience of gathering and submitting information to facilitate tax calculation, paying tax and appetite for IYC and TP, including anticipated impacts, benefits and challenges. A second, qualitative stage will explore in-depth, the potential financial and other effects of IYC and TP on ITSA taxpayers (including vulnerable customers), exploring issues around structure, control and flexibility. Both elements will be instrumental in identifying considerations to help shape IYC system/policy design (to test through the three-year IYC pilot) and inform policy options and costings for TP

Both stages of the research will take cognisance of findings from relevant work (e.g. undertaken by HMRC Policy Lab examining issues around cashflow and the implications for more frequent tax payments; two soon-to-be-published research reports examining the tax challenges faced by self-employed taxpayers and MTD for ITSA customers).

---

More information

Attachments

• Contract Zip.zip
• Signed contract

---

Award information

Awarded date

19 October 2022

Contract start date

20 October 2022

Contract end date

19 October 2023

Total value of contract

£180,000

This contract was awarded to 1 supplier.

IFF Research Ltd

---

About the buyer

Contact name

Fintan Bradley

Address

Trinity Bridge House, 2 Dearmans Place
Salford
M3 5BS
England

Email

fintan.bradley@hmrc.gov.uk