Source · Select Committees · Public Accounts Committee
Recommendation 9
9
Rejected
With the resources it was given in the 2021 Spending Review, HMRC’s aim is to...
Conclusion
With the resources it was given in the 2021 Spending Review, HMRC’s aim is to maintain the tax gap and prevent it from growing. For every £1 that it spends on compliance activity, it said it recovers £18 in additional tax revenues. HMRC sometimes gets additional resources from HM Treasury for particular purposes in return for additional tax revenues. HMRC said that typically this investment recovers between £10 and £20 in tax revenue for every £1 it spends.13 Fraud and error in the COVID-19 support schemes
Government Response Summary
The government disagrees, stating that HMRC's funding levels are a decision for Treasury ministers based on advice from HMRC and HM Treasury officials, and it is right that this advice is considered in private.
Government Response
Rejected
HM Government
Rejected
The government disagrees with the Committee’s recommendation. 2.2 HMRC’s funding levels are a decision for Treasury ministers based on advice from HMRC (the department) and HM Treasury officials, and it is right that this advice is considered in private. The government has a track record of investing additional funds in HMRC’s compliance work to generate additional revenue. For example, at Autumn Statement 2022 the government announced a further £79 million investment in HMRC generating an additional £740 million of tax revenues over the scorecard period.