Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Government investment enables HMRC to reduce the overall tax gap, including evasion.
Conclusion
Previously HMRC had an overall aim to stop the tax gap increasing.29 HMRC told us that it now wants to reduce the tax gap.30 At Autumn Budget 2024, the government increased HMRC’s settlement for 2025–26 by 4.5% in real terms and announced it was investing £1.4 billion over five years for HMRC to recruit 5,000 additional compliance staff.31 HMRC told us this investment will allow it to bear down on the tax gap, including tax evasion.32
Government Response
A response document is linked to this report, dated 6 May 2025. Response attribution to this conclusion has not been verified. Read the response document ↗