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Select Committee · Public Accounts Committee

Tax evasion in the retail sector

Status: Closed Opened: 31 Oct 2024 Closed: 3 Apr 2025 10 recommendations 17 conclusions 1 report

HMRC estimates that £5.5bn of tax was lost due to evasion in 2022-23. This is equivalent to 0.7% of total theoretical tax liabilities, and is most prevalent among small businesses. Of these estimated evasion losses, 81% come from small businesses including companies, partnerships and sole traders. This has risen from 66% of losses in 2019-20. …

Clear

Reports

1 report
Title HC No. Published Items Response
9th Report - Tax evasion in the retail sector HC 355 12 Feb 2025 27 Responded

Recommendations & Conclusions

1 item
24 Recommendation 9th Report - Tax evasion in the retail … Deferred

HMRC has not formally assessed transaction-based reporting, despite its acknowledged compliance benefits.

HMRC has not pursued some controls used in other countries, including ‘transaction–based reporting’ where businesses are required to regularly report all sales and purchases to the tax authority, giving up to date information on the VAT owed.71 We asked HMRC why it had not pursued 63 C&AG’s Report, para 2.15 …

Government response. HMRC will explore the viability and effectiveness of additional controls which could reduce the risk posed by tax evasion and they are consulting on e-invoicing, with further development contingent on the outcome of this consultation which closes on 7 May.
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
16 Dec 2024 Dean Beale · The Insolvency Service, Louise Smyth · Companies House, Penny Ciniewicz · HMRC, Sir Jim Harra · HMRC View ↗

Correspondence

4 letters
DateDirectionTitle
27 Jan 2025 To cttee Letter from the Chief Executive and First Permanent Secretary of HM Revenue and…
17 Dec 2024 From cttee Letter to the First Permanent Secretary and Chief Executive of HM Revenue and C…
17 Dec 2024 To cttee Letter from the Registrar of Companies at Companies House relating to the brief…
16 Dec 2024 From cttee Letter to the Chief Executive and Registrar of Companies at Companies House rel…