ADR UK funding provided to HMRC to further explore widening access to its tax data for research

ADR UK is providing HM Revenue and Customs (HMRC) with a £100,000 grant to explore how to improve research through HMRC’s administrative data. This HMRC project will build the evidence available to decision makers for tax policy and operations. It will also benefit other government departments, researchers, and independent research bodies who engage with HMRC’s tax and financial data.

HMRC administrative data includes information on the different types of tax collected and administered by HMRC, and benefits and credits paid out. This contains data from different types of customers, including individuals and businesses from across the income spectrum, as well as trade data between the UK and other countries.

Research carried out using HMRC data has the potential to provide valuable insights for HMRC, HM Treasury, and other government departments. This can inform their research priorities, policymaking, and service delivery for the public good. All data is carefully de-identified in line with the Five Safes before it is made available for use by accredited researchers for approved projects.

With ADR UK funding, the work to progress HMRC’s future strategy will look to improve tax research through three broad objectives:

• Assess current cataloguing and governance of HMRC’s data used for research purposes against future research needs
• Research ways to improve the quality, coverage, and accessibility of HMRC data used by external researchers. Produce costed options for HMRC Datalab’s future strategy and remote access
• Facilitate greater engagement between HMRC and the research community to drive improved insights that meet HMRC research needs in the future.

HMRC will work closely with government stakeholders to understand how to get the most value from HMRC data and facilitate access. They will also engage with the research community, including current and prospective users of HMRC administrative data, to exchange ideas and ensure research access meets user needs. Results from this exploratory work will inform HMRC’s future direction and drive focus toward impactful research which improves the tax evidence base and better informs decision making.

Dr Emma Gordon, Director, ADR UK said: “HMRC data is hugely valuable for research use, particularly when linked to other administrative sources, as the Longitudinal Education Outcomes (LEO) data has proven. I am delighted that ADR UK funding will be used to support HMRC to consider how best to widen access to its tax data for research. These insights can then feed through to how we work with HMRC in the next phase of the ADR UK investment.”

Adrian Richards, Co-Director, Knowledge, Analysis and Intelligence (KAI), HMRC, said: “We have the potential to further enhance tax decisions in the future through improving our use of administrative data, particularly linking across the variety of tax categories, and securely sharing our data with researchers to work together to draw robust new insights that can fundamentally improve the UK tax system.”

Project details

HMRC Research Future Strategy

Current duration: March – December 2024

Total funding: £100,000 (Full economic cost)