HMRC is returning to pre-pandemic levels of tax recovery as a result of investigations into high net worth individuals and big business
In total, the tax authority recovered £39bn in the 2022-23 tax year as a result of work by investigators, up from £32.2bn in 2021-22. The yearly figure is now slightly up on the performance pre-Covid when £37.7bn was collected from tax avoiders.
For every £1 spent on investigations into high net worth individuals (HNWI) last year, HMRC recovered £30, up from £28 in 2021-22.
While HNWI is proving a lucrative source of revenue, HMRC’s large business team had the best return on investigations, recovering £58 per £1 spent, revealed recent analysis.
Not all compliance teams increased their yield with the individuals and small businesses team recovering just £12 per every £1 spent. In 2021/22 this was £16, marking a 25% drop in performance.