Source · Select Committees · Public Accounts Committee
Recommendation 9
9
Accepted
HMRC aims to reduce the overall tax gap, aligning with OBR's £7.5 billion forecast.
Recommendation
HMRC told us that its ultimate objective is to reduce the overall tax gap, and it hopes the increase in its compliance activity will reduce the tax gap over the next few years.13 The Office for Budget Responsibility (OBR) has forecast a reduction in the tax gap from 4.8%, at the time it did its calculations, to 4.4% by the end of the forecast period which, if achieved, is expected to equate to an additional annual yield of £7.5 billion.14 Allowing for different levels of wealth
Government Response Summary
HMRC will publish its plan in Spring 2026 on how it will improve compliance by the wealthy population and set out timelines and outcomes for each objective, as part of its Transformation Roadmap published in July 2025.
Government Response
Accepted
HM Government
Accepted
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2026 1.2 HMRC’s Transformation Roadmap was published in July 2025. This includes HMRC’s plans to close the tax gap. HMRC will publish its plan in spring 2026 on how it will improve compliance by the wealthy population and set out timelines and outcomes for each objective.