The impacts of the COVID-19 pandemic affected both the risks to tax compliance and the ability of HM Revenue and Customs (HMRC) to carry out its compliance work.
The need to prioritise direct responses to the pandemic (including new employment and self-employment support schemes) reduced HMRC’s overall capacity for tax compliance work, while lockdowns and social distancing meant constraints on face-to-face investigations.
HMRC’s estimate of compliance yield – the additional tax revenue collected or protected as a result of its compliance work – was 18% lower in both 2020/21 and 2021/22 than it had been in 2019/20.
This inquiry is based on the NAO investigation into managing tax compliance following the pandemic. In January the Committee will question senior officials at HMRC to further examine how well HMRC is placed to manage its compliance work following the pandemic, including future risks and challenges.
If you have evidence on this issue please submit it here by 6pm on Monday 16 January 2023. Please have a look at the requirements for written evidence submissions and note the Committee cannot accept material as evidence that has been published elsewhere.