Recommendation 25

In correspondence after our evidence session HMRC said that in 2023–24 it had launched 430 new criminal investigations and more than 10,200 civil investigations into suspected fraud, and had charged around 17,000 penalties for deliberate non–compliance.74 However, the number of prosecutions resulting from HMRC’s criminal investigations reduced from 749 in 2018–19 to 344 in 2023–24.75 In May 2023, the previous Public Accounts Committee raised concerns that fewer prosecutions could weaken the deterrent effect of HMRC’s compliance work.76 HMRC told us it wants to increase the volume of prosecutions resulting from its work.77 It said that it has increased the size of its fraud investigation service from 4,400 people in 2018–19 to 4,800 now, and wants to further increase it to 5,400 by 2029–30. HMRC told us it expects this to result in an increase in the volume of its criminal investigations and resulting prosecutions.78 HMRC also told us that it has increased the number of positive charging decisions it has recommended to the Crown Prosecution Service.79