By Ahmed Abdelsalam
The UK tax authority HM Revenue and Customs (HMRC) has assigned dedicated “customer compliance managers” to more than 200 billionaires with a UK tax footprint, aiming to raise at least £500 million for the public purse. The move marks the first time HMRC has compiled a list of billionaires required to pay tax in the UK regardless of their formal residence.
Dedicated Managers for Complex Affairs
Each billionaire will be offered voluntary discussions before filing taxes to build a shared understanding of their UK tax affairs, which often span multiple taxes, entities, and jurisdictions. HMRC said the managers will make subsequent engagement more focused and proportionate.
Wealthy Tax Gap Estimated at £3.6bn
The wealthy tax gap for 2024-25 was estimated at £3.6 billion, equivalent to 6% of the total tax gap across the UK’s entire tax-paying population. HMRC’s actions are part of a wider commitment to raise £10 billion in additional tax revenues by 2030.
New Technology to Monitor Wealthy Individuals
The authority also plans to deploy advanced analytics, automated triggers, and artificial intelligence to monitor individuals with income over £200,000 or assets above £2 million in any of the last three years. The technology aims to identify emerging risks earlier and target compliance activity where it will have the greatest impact.
MPs Criticized HMRC Over Compliance
In July last year, MPs on the parliamentary public accounts committee grilled HMRC over its lack of understanding of tax compliance by about 1.3 million wealthy taxpayers. Adam Craggs, head of tax, investigations and financial crime at law firm RPC, said anyone with income above £200,000 or net assets over £2 million should now reflect on how clearly they understand and can evidence their UK tax position.
