HMRC Tax Investigation Returns Rise to £34.70 per Pound

The HM Revenue & Customs (HMRC) secured an average of £34.70 in additional tax for every £1 spent on investigations across its five key taxpayer directorates last year. This figure represents a 13% increase from the previous year's return of £30.80, according to analysis by the law firm Pinsent Masons.

The highest returns occurred within investigations into large businesses, where the yield rose 33% to £95.50 per £1 spent. This growth was primarily driven by corporation tax compliance; the Large Business Directorate's corporation tax yield increased by 91%, rising from £3.2bn in 2023/24 to £6.1bn in 2024/25. Additionally, returns from investigations into individuals and small businesses grew by 22% to £14.59 per £1 spent.

To achieve these results, HMRC has focused on complex tax law and risk-rating the largest companies in the UK. During 2024/25, 88 of approximately 1,000 large firms were classified as moderate-high or high risk. Jake Landman of Pinsent Masons noted that the return on investment justifies the additional funding the chancellor has awarded to the agency.