Select committee: Public Accounts Committee
Conclusion 29
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)
Legal interpretation is a primary driver of the large business tax gap, accounting for around 50%. This occurs when HMRC and a large business have different interpretations of the law, and therefore a different understanding of how much tax is due to HMRC.46 HMRC believes that this is partly due to the highly complex nature of the UK tax system, which makes it difficult for businesses to understand their tax obligations.47
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).