A shift in HMRC priorities after the Covid pandemic

The House of Commons’ Public Accounts Committee (PAC) has published its report Managing tax compliance following the pandemic (tinyurl.com/PACReport052023). The committee made six findings and corresponding recommendations to improve HMRC’s tax compliance record.

1. Staffing and compliance

The committee found that HMRC’s response to the pandemic inevitably meant that the department would reduce its tax compliance activity. In 2020-21 HMRC opened 114 000 (32%) fewer cases than the previous year and paused ongoing cases. During the two pandemic years the compliance yield per staff member fell from £1.3m a year to £1.1m. While HMRC has made a recruitment push the yield return per staff member is unlikely to match pre-pandemic levels due to a lack of experience among newer staff.

With regard to this finding the committee recommended that HMRC should specify how it can better respond where it is likely that compliance...