Background
HMRC estimates that tax evasion cost the government around £5 billion in 2021-22. With increasing numbers of sales through online marketplaces, including from overseas, and the high street under competitive pressure, HMRC may face new challenges in collecting tax revenue. The Economic Crime and Corporate Transparency Act 2023 introduced changes that may help HMRC in its efforts to tackle evasion. This includes identity checks for new and existing company registrations, and additional powers and duties for Companies House and the Insolvency Service covering information sharing and enforcement work.
Scope
This study will examine whether HMRC, with other relevant parts of government, is well-placed to tackle tax evasion in the retail sector and online services. It will cover the extent to which:
- HMRC understands and assesses effectively the risk and scale of tax evasion in the retail sector and online services
- HMRC, with key partners, has cost-effective systems and controls to reduce the risk of tax evasion in the retail sector and online services
- HMRC responds effectively to different methods of tax evasion in the retail sector and online services, and ensures lessons are learned to improve its approach
NAO Team
Director: Andy Morrison
Senior Audit Manager: Rich Sullivan-Jones