Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps HM Revenue and Customs has taken to improve tax compliance yield.

The UK tax gap is currently low and stable, falling from 7.5 per cent in 2005 to 2006 to 4.8 per cent in 2021 to 2022.

In 2022 to 2023, compliance action from HMRC secured and protected £34 billion for public services that would otherwise have gone unpaid. 2023 to 2024 compliance yield figures indicate that they are on track to exceed last year’s performance.

HMRC is making it easier for customers to get it right first time and hard to get wrong by investing in digital systems, simplifying policies and processes, and improving guidance and support to improve compliance.

Since 2010, the Government has also introduced over 200 new measures to tackle many different forms of non-compliance. Most recently, at Spring Budget 2024, the government announced a new package of measures to tackle the tax gap, which will raise over £4.5 billion over the next five years.