HMRC’s administration costs for running the tax system rose by 15% – equivalent to £563m – in real terms between 2019-20 and last year, and totalled £4.3bn in 2023-24, with tax revenue increasing at a similar rate, according to the NAO.
UK tax administration costs spiralling due to complex system, says watchdog Businesses pay hundreds of millions of pounds more and losing trust in HMRC, reports National Audit Office.
Gareth Davies, the head of the NAO, said: “Businesses and individuals deserve a modern, resilient and effective tax system to help them get their tax right first time.
They added: “We’re already improving and modernising the tax system to deliver the services our customers expect and slash red tape for business, and ongoing investment in our digital services will be vital to closing the tax gap yet further.”.
The report by the National Audit Office (NAO) also said “poor levels of service” meant some taxpayers and their representatives were “finding it more difficult to deal with their tax matters and are losing trust in HM Revenue & Customs [HMRC]”.
