Autumn Statement 2023: Tackling the tax gap

23rd November 2023

The Government has announced that they intend to raise £5 billion over the next five years, through a package of measures designed to tackle the tax gap – the difference of what should theoretically be paid in tax versus what HMRC actually collects.

As per the published Autumn Statement, these measures include Construction Industry Scheme (CIS) reform, a new criminal sanction for the promoters of tax avoidance schemes, together with further investments in debt management and collection. This is a continuation of significant investment in HMRC’s tax compliance; every £1 invested by the Government in HMRC compliance historically yields multiples of this for the exchequer in return. This highlights the Government’s commitment to making sure everyone pays the right amount of tax, in order to close the tax gap.

HMRC to increase debt management resource

The Government are investing a further £163m in HMRC’s debt management resources. HMRC is highlighting that it wants to provide better support to those who are temporarily unable to pay, and to help taxpayers out of debt faster. However, we do not expect this investment is introduced with the sole aim of helping taxpayers; instead, HMRC is taking tougher action on tax debts and looking to recover tax liabilities as quickly as possible to replenish the coffers as we continue to recover from the pandemic.

You can read haysmacintyre’s full coverage of the Autumn Statement here. For further advice on the above announcements, contact Danielle Ford, Partner and Head of Tax Disputes & Resolutions, or Riocard Hoye, Senior Manager.

Danielle Ford

Partner, Head of Tax Disputes & Resolutions
+44 20 7969 5591
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