Tax investigations hit record high

This £7 billion increase highlights HMRC’s intensified enforcement activity and the Government’s continued investment in tackling tax evasion.

Focus on wealthy individuals continues

HMRC’s compliance efforts have been particularly effective among high-net-worth individuals. Revenue from investigations into wealthy taxpayers more than doubled, generating over £1.5 billion in 2024 alone.

In response, HMRC plans to recruit an additional 400 compliance officers over the next four years, aiming to raise at least £500 million more in tax by 2030. Overall, tax collected from high earners increased from £4 billion to £5.2 billion year-on-year.

Accurate reporting more important than ever

These developments serve as a timely reminder of the importance of accurate and transparent tax reporting. Ensuring your tax return is correct—and supported by appropriate documentation—is essential for defending against any potential HMRC enquiries.

If you discover an error, such as unreported income, it is vital to speak with your accountant or tax adviser promptly to address the issue.

New powers and data-sharing measures coming

Looking ahead, new measures will give HMRC enhanced powers to better utilise third-party data. Data-holders, including financial institutions, will be required to report relevant information directly to HMRC—strengthening its ability to identify non-compliance. These changes are expected to come into effect by April 2027, and signal that this upward trend in investigations is likely to continue.