UK tax authority assigns dedicated compliance managers to 200 billionaires

HM Revenue and Customs (HMRC), the UK's tax authority, is assigning dedicated "customer compliance managers" to more than 200 billionaires. Announced after Wednesday's budget, the move is part of a crackdown intended to bring £500m into the public purse.

HMRC said it had for the first time compiled a list of billionaires who must pay tax in Britain, whether or not they formally live there. The aim is to narrow the "wealthy tax gap", the shortfall caused by rich people not paying what they owe. For 2024-25 that gap was estimated at £3.6bn, equal to 6% of the total tax gap across all UK taxpayers.

What the managers will do

HMRC said billionaires' affairs often span several taxes, entities and jurisdictions, creating a need for earlier and more coordinated engagement. The managers will offer each billionaire voluntary discussions before tax returns are filed, to build a shared understanding of their UK tax affairs and make later engagement more focused and proportionate.

New technology

The authority also plans to deploy new technology to monitor wealthy individuals, defined as those with income above £200,000 or assets above £2m in any of the last three years. It will use advanced analytics, automated triggers and artificial intelligence to spot emerging risks earlier and direct checks where they will matter most.

HMRC said the actions would contribute at least £500m towards a wider commitment to raise £10bn in additional tax revenue by 2030.

Background

In July last year, MPs on the parliamentary public accounts committee questioned HMRC over its limited understanding of tax compliance among about 1.3 million wealthy taxpayers. Adam Craggs, head of tax, investigations and financial crime at the law firm RPC, said anyone with annual income above £200,000 or net assets above £2m should now reflect on how clearly they understand and can evidence their UK tax position and their dealings with HMRC.