Select committee: Public Accounts Committee
Conclusion 26
9th Report - Large business tax compliance
Published 10 Jul 2026
Addressed to HM Treasury
Public Accounts Committee Large business tax compliance All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
HMRC recognises that the Pillar 2 arrangements will introduce added complexity to the tax affairs of those large businesses which fall within its remit, and that businesses will need to compute their Corporation Tax differently.39 HMRC has forecast that complying with Pillar 2 will impose one-off costs of £13.7 million and recurring annual costs of £8.2 million across all affected businesses.40 HMRC told us that the Pillar 2 rules have been iterated since being introduced, with HMRC looking to simplify requirements on businesses subject to the UK’s Pillar 2 rules where possible.41
From: Public Accounts Committee, 9th Report - Large business tax compliance (HC 86), 10 July 2026
Government response
The government responded to the whole report on 1 October 2026 (deadline 10 September 2026).