HMRC closed 256,000 civil compliance checks in 2021-22, up from 248,000 the previous year. Compliance yield fell during the pandemic as we reprioritised work recognising the challenges faced by individuals and businesses. Any compliance risks that we did not pick up during the Covid period are still there and available for us to work.<\/p>
<\/p>
The most efficient way to get tax right across 45 million individuals and 5 million businesses is for HMRC to guide the taxpayer by intervening before anything has the chance to go wrong. That includes things like prompts built into the online Self Assessment System, which flag when a customer\u2019s entry is out of line with what is expected. It also includes creating policies that make it easy for people to do the right thing and in a way that makes some historical forms of non-compliance nearly impossible.<\/p>
<\/p>
HMRC\u2019s approach is underpinned by cutting-edge data analysis, which we use to identify where tax is most at risk of not being paid and design tailored, targeted and proportionate interventions to address it. A \u2018compliance check\u2019 allows us to investigate someone\u2019s tax affairs if we think they may not be paying the right amount of tax.<\/p>
<\/p>
The Government continues to invest in HMRC to ensure the right amount of tax is paid. For example, new measures were announced at the Autumn Statement 2022 which are forecast to raise £1.7 billion in tax revenue over the next five years.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4726", "label" : {"_value" : "Biography information for Baroness Penn"} } , "answeringMemberPrinted" : {"_value" : "Baroness Penn"} , "dateOfAnswer" : {"_value" : "2023-01-04", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2023-01-04T16:40:31.707Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-12-16", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Tax Evasion: Criminal Investigation"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask His Majesty's Government what plans they have to increase the number of tax compliance investigations.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4153", "label" : {"_value" : "Biography information for Lord Kennedy of Southwark"} } , "tablingMemberPrinted" : [{"_value" : "Lord Kennedy of Southwark"} ], "uin" : "HL4365"} , {"_about" : "http://data.parliament.uk/resources/1552744", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1552744/answer", "answerText" : {"_value" : "
Financial Year<\/p><\/td> | Prosecutions<\/p><\/td><\/tr> |
2011/12<\/p><\/td> | 449<\/p><\/td><\/tr> |
2012/13<\/p><\/td> | 576<\/p><\/td><\/tr> |
2013/14<\/p><\/td> | 761<\/p><\/td><\/tr> |
2014/15<\/p><\/td> | 709<\/p><\/td><\/tr> |
2015/16<\/p><\/td> | 880<\/p><\/td><\/tr> |
2016/17<\/p><\/td> | 887<\/p><\/td><\/tr> |
2017/18<\/p><\/td> | 917<\/p><\/td><\/tr> |
2018/19<\/p><\/td> | 749<\/p><\/td><\/tr> |
2019/20<\/p><\/td> | 691<\/p><\/td><\/tr> |
2020/21<\/p><\/td> | 163<\/p><\/td><\/tr> |
2021/22<\/p><\/td> | 236<\/p><\/td><\/tr> |
Total<\/p><\/td> | 7372<\/p><\/td><\/tr><\/tbody><\/table> <\/p> The information provided above shows the number of prosecutions resulting from HMRC criminal investigations since the start of the 2011/2012 financial year - when the Department\u2019s assured data begins.<\/p> <\/p> However, HMRC is not a prosecuting authority. Cases are prepared to the highest evidential standard and passed to the relevant prosecuting authority, who decide if a case progresses to court.<\/p> <\/p> HMRC is therefore reliant on the prosecuting authorities and the criminal justice system to progress cases to conclusion. This is a lengthy process and outcomes achieved in any given year are not necessarily reflective of HMRC\u2019s activity in the same period.<\/p> <\/p> The number of prosecutions has fallen over the last three years. There are a number of contributing factors here, including ongoing delays within the courts system due to the pandemic, and HMRC\u2019s strategic choice to focus on harder-to-reach targets and tackle the most serious frauds.<\/p> <\/p> Prosecutions represent one element of a wide-ranging HMRC response to tax fraud, which also includes civil investigations and sanctions, data and intelligence analysis, risk detection and profiling, education, legislative change, partnering with the public and private sectors, and target-hardening of our systems and processes.<\/p> <\/p> In practice, the Department focusses interventions where they have most impact, an approach which is about reaching the right outcome for the UK, rather than chasing arbitrary targets for arrests and prosecutions.<\/p> <\/p> Most of HMRC\u2019s work to tackle tax fraud makes use of civil powers because these are the most proportionate, economical and effective way to recover monies owed and tackle fraud; as such, criminal investigations are focused on cases which meet certain criteria to ensure they deliver both value for money for the taxpayer and the maximum impact on tax fraud.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4726", "label" : {"_value" : "Biography information for Baroness Penn"} } , "answeringMemberPrinted" : {"_value" : "Baroness Penn"} , "dateOfAnswer" : {"_value" : "2023-01-04", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2023-01-04T16:24:56.503Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-12-16", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Tax Evasion: Prosecutions"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask His Majesty's Government how many criminal prosecutions for tax offences have been undertaken by HMRC each year since 2010 up until the last year for which records are available.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4153", "label" : {"_value" : "Biography information for Lord Kennedy of Southwark"} } , "tablingMemberPrinted" : [{"_value" : "Lord Kennedy of Southwark"} ], "uin" : "HL4366"} , {"_about" : "http://data.parliament.uk/resources/1552745", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1552745/answer", "answerText" : {"_value" : " Over £100 billion of tax receipts in 2021-2022 were received through Income Tax Self Assessment and Corporation Tax Self Assessment.<\/p> <\/p> Individuals and businesses with taxable income that has not already been fully taxed at source are required to report that income and pay the tax due through the Income Tax Self Assessment system. Companies self-assess their tax liabilities and pay their tax through the Corporation tax self assessment system.<\/p> <\/p> HMRC has the power to check self-assessed tax liabilities, investigate and assess further tax if necessary.<\/p> <\/p> HMRC monitors the effectiveness of Self Assessment in a variety of ways, including the annual measurement of tax receipts and through estimates and analysis of the tax gap. HMRC also engages with taxpayers and their representatives at a variety of customer and agent community forums such as the Admin Burden Advisory Board, the Individual Stakeholder Forum and the Business Tax forum.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4726", "label" : {"_value" : "Biography information for Baroness Penn"} } , "answeringMemberPrinted" : {"_value" : "Baroness Penn"} , "dateOfAnswer" : {"_value" : "2023-01-04", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2023-01-04T12:17:11.987Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-12-16", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Self-assessment"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask His Majesty's Government what recent assessment they have made of self-assessment as a mechanism for ensuring the collection of all taxes owed to HMRC.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4153", "label" : {"_value" : "Biography information for Lord Kennedy of Southwark"} } , "tablingMemberPrinted" : [{"_value" : "Lord Kennedy of Southwark"} ], "uin" : "HL4367"} , {"_about" : "http://data.parliament.uk/resources/1552747", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1552747/answer", "answerText" : {"_value" : " The Government recently undertook a full review of the business rates system. The Final Report of the Business Rates Review was published at Autumn Budget 2021. The report reaffirmed the importance of business rates as part of the UK tax system, particularly as they raise around £20 billion a year to fund vital local services. As part of this Review the Government committed to more frequent revaluations from 2023, a major reform to the system ensuring that business rates liabilities are more responsive to changing market conditions. This addresses a key ask of stakeholders for more frequent revaluations and to reduce the burden of business rates to make the system fairer.<\/p> <\/p> At Autumn Statement 2022, the Government announced a package of changes and tax cuts worth £13.6 billion over the next five years. The package contains new measures to reduce the burden of business rates on firms, including a freeze in the multiplier, extended relief for high street businesses, and a new Exchequer funded Transitional Relief scheme to help ratepayers adapt to their new bills.<\/p> <\/p> The Government keeps all taxes under review.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4726", "label" : {"_value" : "Biography information for Baroness Penn"} } , "answeringMemberPrinted" : {"_value" : "Baroness Penn"} , "dateOfAnswer" : {"_value" : "2023-01-04", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2023-01-04T12:19:19.11Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-12-16", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Business Rates: Reform"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask His Majesty's Government what recent assessment they have made of business rates and the case for reform.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4153", "label" : {"_value" : "Biography information for Lord Kennedy of Southwark"} } , "tablingMemberPrinted" : [{"_value" : "Lord Kennedy of Southwark"} ], "uin" : "HL4369"} , {"_about" : "http://data.parliament.uk/resources/1543751", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1543751/answer", "answerText" : {"_value" : " The Government established a Cryptoassets Taskforce in 2018, consisting of HM Treasury, the Bank of England and the Financial Conduct Authority (FCA). The Taskforce\u2019s objectives include exploring the impact of\u202fcryptoassets, the potential benefits and challenges of Distributed Ledger Technology (DLT, which includes blockchain technology) in financial services; as well as monitoring ongoing developments in cryptoasset markets.<\/p> <\/p> These crypto technologies could have a profound impact across financial services, including reducing risk, working capital, and disintermediating friction. However, there are also associated risks. As the Bank of England\u2019s Financial Policy Committee noted, as crypto technologies grow and become more interconnected with the core financial system we\u2019ll need to ensure that regulators have the right tools to manage the associated risks. That is why the Government is taking forward a number of regulatory initiatives to manage risks and support innovation so that people and businesses can use new technologies both reliably and safely.<\/p> <\/p> The Government is putting in place a Financial Market Infrastructure (FMI) Sandbox, which will enable firms to experiment with the use of new technologies like DLT in providing the services that underpin financial markets. The Government is also exploring the possible use of DLT in the issuance and lifecycle of a sovereign debt instrument. Further details on this research programme will be set out in due course.<\/p> <\/p> The non-fungible tokens (NFTs) market is evolving rapidly and remains at an early stage of development. Most NFTs are not currently subject to financial services regulation in the UK and the Government has proposed to exclude them from the financial promotions regime on the basis that NFTs can represent a wide array of different assets which might constitute non-financial services products. The Government will continue to closely monitor how NFTs are used in financial services and take further action if necessary.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4726", "label" : {"_value" : "Biography information for Baroness Penn"} } , "answeringMemberPrinted" : {"_value" : "Baroness Penn"} , "dateOfAnswer" : {"_value" : "2022-12-02", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2022-12-02T13:02:08.027Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-11-18", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Blockchain and Non-fungible Tokens"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask His Majesty's Government what assessment they have made of the (1) operation, (2) benefits, and (3) risks, of (a) Non-Fungible Tokens (NFTs), and (b) the wider blockchain.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4153", "label" : {"_value" : "Biography information for Lord Kennedy of Southwark"} } , "tablingMemberPrinted" : [{"_value" : "Lord Kennedy of Southwark"} ], "uin" : "HL3559"} , {"_about" : "http://data.parliament.uk/resources/1487143", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1487143/answer", "answerText" : {"_value" : " The temporary 12-month cut to duty on petrol and diesel of 5p per litre represents a £2.4 billion tax cut in 2022-23.<\/p> <\/p> All taxes, including fuel duty, remain under review.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4726", "label" : {"_value" : "Biography information for Baroness Penn"} } , "answeringMemberPrinted" : {"_value" : "Baroness Penn"} , "dateOfAnswer" : {"_value" : "2022-07-20", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2022-07-20T10:15:11.72Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-07-06", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Fuels: Excise Duties"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask Her Majesty's Government what price petrol and diesel would need to reach in order to prompt them to further cut fuel duty.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4153", "label" : {"_value" : "Biography information for Lord Kennedy of Southwark"} } , "tablingMemberPrinted" : [{"_value" : "Lord Kennedy of Southwark"} ], "uin" : "HL1523"} , {"_about" : "http://data.parliament.uk/resources/1487144", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1487144/answer", "answerText" : {"_value" : "The Government has been clear that it expects all those in the supply chain to pass the fuel duty cut through to consumers in full. <\/p> In June, the Business Secretary requested that the independent Competition and Markets Authority (CMA) undertake an urgent review of the market for road fuel. The CMA\u2019s initial findings suggest that the fuel duty cut appears to have been largely passed through, with the largest fuel retailers doing so immediately and others more gradually.<\/p> <\/p> The Government fully supports the CMA in its further work to better understand the supply of the road fuel in the UK, and will await these findings.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4726", "label" : {"_value" : "Biography information for Baroness Penn"} } , "answeringMemberPrinted" : {"_value" : "Baroness Penn"} , "dateOfAnswer" : {"_value" : "2022-07-20", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2022-07-20T10:15:31.147Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-07-06", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Fuels: Excise Duties"} , "houseId" : {"_value" : "2"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25277", "prefLabel" : {"_value" : "House of Lords"} } ], "questionText" : "To ask Her Majesty's Government what steps they are taking to ensure that the five pence per litre cut to fuel duty is passed on to consumers.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4153", "label" : {"_value" : "Biography information for Lord Kennedy of Southwark"} } , "tablingMemberPrinted" : [{"_value" : "Lord Kennedy of Southwark"} ], "uin" : "HL1524"} , {"_about" : "http://data.parliament.uk/resources/1347565", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1347565/answer", "answerText" : {"_value" : " The numbers of individuals in each local authority that declared income from property excluding furnished holiday lettings via their Self-Assessment tax returns in 2019-20 are provided in the attached table, rounded to the nearest 10.<\/p> It should also be noted that:<\/p> <\/p>
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