HMRC Statistics on Tax Compliance 2022/23

HMRC aims to ensure all businesses are paying the correct taxes and following tax rules. 

Between 1 April 2022 and 31 March 2023, HMRC carried out a total of 299,000 compliance checks, with enquiries into the non-compliance of taxpayers. 

This was an increase in 13% compared to the previous year.

To assist with tackling tax compliance, HMRC also recruited an additional 4000 members of staff in 2021/22. 

In the first instance, HMRC uses various methods to encourage voluntary tax compliance.  This includes educating taxpayers, changes to simplifying processes and the operational activity of tax avoidance schemes.  

A tax avoidance scheme bends the tax rules to gain a tax advantage that was never intended. 

During 2022/23, under the new Finance Act 2021 and 2022 powers, HMRC named 27 promoters and 5 directors, details of 31 tax avoidance schemes and issued 13 stop notices. Penalties of up to £1 million can be issued for failure to comply and the government has proposed non-compliance with a stop notice to be a criminal offence. 

In 2022/23, just over 2000 tax cases reached the First-tier Tribunal (FTT) stage.

The First-tier Tribunal stage is when a tax dispute has not been settled between HMRC and a taxpayer. The taxpayer is then able to appeal to an independent tax tribunal.

HMRC obtained full or substantive success in 92% of cases at First-tier Tribunal stage.

The 2022/23 statistics demonstrate HMRC’s commitment to enforcing tax compliance. 

With a 13% increase in compliance checks and the recruitment of 4000 additional members of staff, HMRC is actively tackling tax non-compliance. The 92% success rate for HMRC at First-tier Tribunals is evidence of the effectiveness of HMRC’s enforcement measures.

Don’t get caught out by HMRC and avoid tax non-compliance by preparing for the next tax year. 

HMRC issues penalties when tax returns are not submitted, if the correct tax isn’t paid on time, or when there is an inaccuracy in a document (either through carelessness or deliberately). 

Read more about how to prepare for the next tax year here