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The cost of the tax system

Inquiry

HM Revenue and Customs’ (HMRC) stated aim is to run the tax system in the simplest, most customer-focused and efficient way. In 2020, the Government published its 10-year strategy to build a trusted, modern tax administration system. The long-term goal is to create a system which prevents non-compliance, and allows both businesses and individuals to get their tax right the first time.  

The PAC has recently scrutinised HMRC’s customer service, underpinned by National Audit Office (NAO) findings in 2024 that delivering responsive customer service continued to be one of HMRC’s biggest challenges. The Committee has also examined tax evasion in the retail sector, challenging HMRC on evident gaps in controls. Overall evasion costs represent an annual £5.5bn hit in lost revenue to the public purse every year. 

The NAO undertook a 2025 report on drivers of cost in the tax system, which costs HMRC billions of pounds a year to administer while placing administrative and financial burdens on taxpayers, in addition to the taxes they owe. The study sought to help understand how elements of the tax system drive these costs, while establishing what progress HMRC has made in reducing costs and improving efficiency. 

Based on the NAO report, the PAC will hear from senior HMRC officials on topics including: 

  • What costs the UK tax system imposes on HMRC taxpayers and their intermediaries; 
  • Challenges in tackling the costliest parts of the system; and  
  • How HMRC is using opportunities to reduce costs. 

Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. 

Please note that the Committee is unable to consider or assist with individual cases. If you need help with an individual problem you are having, you may wish to read the information on Parliament’s website about who you can contact with different issues

The deadline for submitting written evidence is Wednesday February 19 at 23:59pm.

This inquiry is currently accepting evidence

The committee wants to hear your views. We welcome submissions from anyone with answers to the questions in the call for evidence. You can submit evidence until Wednesday 19 February 2025.

Read the call for evidence before submitting

Past events

No past events

Contact us

  • Email: pubaccom@parliament.uk
  • Phone: 020 7219 8480 (strictly media enquiries only – contact us via our email for general enquiries)
  • Address: Public Accounts Committee, House of Commons, London, SW1A 0AA