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.