HMRC compliance work has continued to secure a healthy return on investment, according to research by Pinsent Masons. In 2022/23, every pound spent on investigations into wealthy individuals brought in an extra £30 in tax, reports the firm – up from £28 in the previous tax year.
HMRC’s Large Business Directorate saw even greater returns, generating £58 in extra tax per pound spent, while the Counter-Avoidance team increased its yield by 45% (£16 per pound spent, up from £11 the previous year).
Steven Porter, Partner and Head of Tax Disputes and Investigations at Pinsent Masons, said: ‘Investing in the staff and technology to chase wealthy individuals is paying handsomely for HMRC – high net worths should expect this trend to continue. HMRC will continue allocating teams of investigators to where it gets the best returns.
‘As we saw in Bernie Ecclestone’s case – the returns on investment from investigating wealthy individuals can be tremendous,’ he added.
The firm also highlights a 14% increase in HMRC’s wage bill for compliance work over the last year or so, demonstrating HMRC’s confidence in its compliance work. The results appear to show that the increase in resources for HMRC is paying off, with the government likely to continue to invest. As Porter notes: ‘Wider use of AI through HMRC’s Connect system will help to leverage those extra staff and deliver higher yields.’
HMRC compliance work has continued to secure a healthy return on investment, according to research by Pinsent Masons. In 2022/23, every pound spent on investigations into wealthy individuals brought in an extra £30 in tax, reports the firm – up from £28 in the previous tax year.
HMRC’s Large Business Directorate saw even greater returns, generating £58 in extra tax per pound spent, while the Counter-Avoidance team increased its yield by 45% (£16 per pound spent, up from £11 the previous year).
Steven Porter, Partner and Head of Tax Disputes and Investigations at Pinsent Masons, said: ‘Investing in the staff and technology to chase wealthy individuals is paying handsomely for HMRC – high net worths should expect this trend to continue. HMRC will continue allocating teams of investigators to where it gets the best returns.
‘As we saw in Bernie Ecclestone’s case – the returns on investment from investigating wealthy individuals can be tremendous,’ he added.
The firm also highlights a 14% increase in HMRC’s wage bill for compliance work over the last year or so, demonstrating HMRC’s confidence in its compliance work. The results appear to show that the increase in resources for HMRC is paying off, with the government likely to continue to invest. As Porter notes: ‘Wider use of AI through HMRC’s Connect system will help to leverage those extra staff and deliver higher yields.’
