Tax authority lacks ambition, say MPs

HMRC collected £731.1bn in taxes and duties in 2021-22 the highest on record reflecting the end of the acute phase of the pandemic. But according to the House of Commons’ Public Accounts Committee HMRC is still not deploying the resources required to maximise the tax revenues it collects or provide an acceptable level of customer service. At a time of huge strain for the public finances £42bn is owed in unpaid tax and HMRC is failing to collect around 5% of the tax it is owed each year.  

In a new report HMRC performance in 2021–22 the committee says HMRC must target scarce resources to ensure businesses and individuals who are able to pay do. For every £1 HMRC spends on compliance activities it recovers £18 in additional tax revenue. The failure to resource compliance properly...