Research from the government tax department finds that citizens’ level of comfort with the sharing of information varies greatly, depending on the use case and their own feelings and circumstances
HM Revenue and Customs has revealed the results of government-commissioned research on citizens’ attitude towards data-sharing which identified a “lack of awareness and understanding of the issues”.
According to a summary of the research freshly published on GOV.UK, the prospect of personal info being distributed both within and beyond government was found to be “an emotive topic with mixed responses”.
While about six in ten respondents to the survey recognised, in each case, the potential data-sharing benefits of greater convenience and time-savings, some 87% of participants said they had concerns about data security.
Despite 71% expressing a high level of confidence in their own digital abilities, only 49% were similarly confident that they could make well-informed decisions about how their information might be used.
The research uncovered a comparatively high level of belief that HMRC could protect the confidentiality of citizens’ data, with 58% of survey respondents expressing confidence in the department’s ability to do so – compared with 49% for government as a whole.
“Reassurances are required on security, control, accuracy and privacy of their data to overcome latent concerns. However, data sharing presents an opportunity to contribute to streamlined and positive digital experiences.”
The figures of those who said they were definitively not confident that privacy could be safeguarded were 15% for HMRC and 19% for government overall. While these numbers represent a relatively small minority, the prospect of data being shared beyond the borders of Whitehall was of far greater concern to respondents, HMRC’s research summary indicated.
“The low proportion of people who were not confident reflected the qualitative finding that sharing data between government departments was accepted and normalised,” it said. “However, the qualitative research found that lower levels of trust in third parties impacted attitudes towards data sharing with HMRC. There were concerns about HMRC gathering data from banks and building societies and online platforms, as well as a nervousness around third-party software. Perceptions of a third-party as a secure data holder was a key driver to acceptance of data sharing, alongside an understanding of why HMRC is sharing or receiving data with them.”
Mixed feelings
Participants were provided with various examples of how HMRC could share data so as to support its intended reforms of the administration of the tax system. These prompted a “mixed response”, with people’s feelings about the possible scenarios largely informed by people’s circumstances, experiences, and existing feelings.
Defining factors included citizens’ current level of trust in HMRC, whether or not their tax affairs are managed through a third-party accountant or agent, and the complexity of their circumstances.
The summary added: “For PAYE customers, there was an acceptance of data sharing between HMRC and their employer, but data sharing with third parties beyond that could seem unnecessary, whereas self-employed and gig economy workers welcomed some of the benefits that data sharing with third parties would bring.”
Other factors that influenced respondents’ attitude towards prospective data-sharing included wider attitudes towards data protection and privacy, levels of digital confidence, and whether they were used to putting personal information and files in a cloud environment.
“Those who had already shared data to a secure cloud had higher comfort levels than those with limited experience of saving data this way, who were relatively fearful about data security,” the summary said.
The scenarios set out to research participants included: using HMRC data to pre-populate government forms; HMRC receiving data about citizens’ money and financial affairs directly from banks; HMRC receiving sales information from the likes of eBay and Esty; enabling digital platforms like Uber to deduct tax automatically; and providing tax agents with all of their clients’ information.
Every single respondent was comfortable with at least one of these proposed data uses, topped by 81% of those who use tax agents supporting greater access for agents to customer details.
Some 69% of all respondents said they were happy for HMRC to pre-populate forms using data they already held, while about half of participants, in each case, were comfortable with banks sharing customers financial data direct with government, and online platforms like Uber deducting workers’ tax payments directly.
87%
Proportion of respondents that harbour at least some concerns about data security
73%
Proportion that would like an opt-in system for sharing of personal data, compared with 16% that favour an opt-out model
71%
Proportion that have a high level of confidence in their digital abilities
58%
Proportion that are confident in HMRC’s ability to protect confidentiality, compared with 49% for government overall
There was least support for sites like eBay and Etsy sharing information on user sales, with just 38% of respondents comfortable with this scenario.
“Those directly impacted by the concepts in the scenarios showed higher levels of comfort, but also greater concerns due to their closeness with the scenario,” the research summary said. “The qualitative research suggested that this particularly applied to people selling or working through online platforms, as they had a better understanding of how and why this would work. However, they also had more concerns, particularly about the quality of the data and the burden of making changes if they believe data to be incorrect.”
Options
HMRC’s study found that “being asked for permission for data sharing increases levels of comfort” significantly – with 73% of participations saying would like an opt-in system for the sharing of taxpayer data. Just 16% favoured an opt-out approach.
But an even bigger “driver of increased comfort across scenarios was the ability for individuals to check and correct their data”.
This is demonstrated by an extra 14% of people who would be happy for forms to be pre-filled with their info if this editing ability was offered – taking the total from 69% to 83%.
The summary added: “In conclusion, data sharing is an emotive topic with mixed responses reflecting lack of awareness and understanding of the issues. Reassurances are required on security, control, accuracy and privacy of their data to overcome latent concerns. However, data sharing presents an opportunity to contribute to streamlined and positive digital experiences.”
