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Before considering any tax changes to repair the public finances, the government is ensuring that everyone is paying the tax that they owe. This is fair, essential for a well-functioning economy and will help to keep taxes on working people as low as possible. To stop people taking unfair advantage of the system, the government is announcing the most ambitious ever package to close the tax gap, raising £6.5 billion in additional tax revenue per year by 2029-30. To deliver this and wider reform, the HMRC Board has been refocused with the Exchequer Secretary to the Treasury as its ministerial chair for the first time. As part of this package, the government is recruiting an additional 5,000 compliance staff - with the first 200 starting training in November – and providing funding for 1,800 debt management staff. This will ensure more of the tax that is owed is paid and that more taxpayers pay outstanding tax due. The government is also investing in modernising IT and data systems to improve HMRC's productivity and improve taxpayers’ experience of dealing with the tax system, delivering the modern and digital service businesses and individuals expect. The government will legislate to close loopholes in company car tax rules by ending contrived car ownership schemes, and encourage taxpayers to pay tax on time by increasing the interest rate charged on overdue tax debts. The government is also committed to taking stronger action on the most egregious tax fraud, including by expanding HMRC’s criminal investigation work and legislating to prevent abuse in non-compliant umbrella companies. The Budget also sets out the first steps of the government’s longer-term ambition to design out opportunities for non-compliance and make the tax system easier to deal with, through making better use of data and raising the standards of tax advisers who interact with HMRC.
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