Tag: HMRC

Directors planned £20m tax fraud at secret meetings

HMRC: West Lothian family sentenced

A network of corrupt company directors has been jailed for more than 70 years after they were caught planning an elaborate multi-million-pound tax fraud during clandestine meetings.

The company at the heart of the fraud, Winnington Networks Ltd (WNL), deliberately understated how much VAT was owed to HM Revenue and Customs (HMRC) between 2011 and 2014.

Key evidence was secured when WNL’s Financial Director, Neil Pursell, 60, and key players, were caught conspiring at two hotel meetings held in Manchester and Birmingham in late 2013.

At each meeting, the men openly discussed the fraud; the mechanics and how they could just “invent the numbers” to falsely offset their output VAT claims.

Three earlier trials have already resulted in prison sentences of more than 62 years and Director disqualifications of more than 100 years.

The fraud, which was described by trial Judge Dafna Spiro as “complex and highly sophisticated” saw WNL generating VAT by creating price drops on metals and electrical items they sold via a contrived chain of business transactions outside the UK.

After adding VAT back on to items and selling them at competitive rates to real customers in the UK, Winnington set about offsetting the VAT they had created.

They did this by falsely claiming they had sold VOIP (Voice Over Internet Protocol or telecommunications/internet airtime) to UK suppliers.

Richard Las, Director of HMRC’s Fraud Investigation Service, said: “This incredibly complex fraud was dismantled thanks to the tenacity, skill and dedication of our criminal investigators.

“I hope this sends a clear message to anyone involved in tax fraud that regardless of how complex it may be, we have the skills, resources and the determination to catch you and to bring you to justice.

“The scale of the sentences and the significant director disqualifications show how seriously the courts have treated this sustained and sophisticated attack on the UK tax system.

“Tax fraud is not a victimless crime. It steals money that funds the public services we all rely on and I’d urge anyone with information about any type of tax fraud or money laundering to report it to HMRC on GOV.UK.”

The vast majority of VOIP was fake, but WNL and the co-conspirators recruited people who owned VAT-registered businesses to issue fake documents. In return they were handed a share of the profits of the fraud.

They created multiple fictitious deal chains to make it look genuine and even created two fake offshore banking platforms, said to be based in the Seychelles and Canada, in a bid to produce a convincing set of financial records.

A nationwide HMRC operation in March 2014, led to the arrest of 15 people, searches of 36 premises (including a property in Cyprus) and the winding up of three companies.

The huge investigation ultimately led to four trials at Southwark Crown Court and the conviction of 20 people.

Alexander White, Specialist Prosecutor for the Crown Prosecution Service, said: “Kashaf Bashir, William Lindfield, Assim Rather, Vishal Chudasama,  Adeel Karamat Malik,  Beverley Thompson, and Sarah Jane Peploe were sentenced for playing important roles in stealing and laundering £20 million from the UK taxpayer.

“Together with the other thirteen convicted defendants, they helped operate a complex and sophisticated fake system of offsetting VAT payments to HMRC, money which was meant for public services but was instead stolen for their own selfish purposes.

 “The CPS has commenced proceeds of crime proceedings against all of these defendants to claw back this illegally obtained money.”

All 20 people were convicted of or admitted either conspiracy to cheat the public revenue or money laundering offences.

Three family members from West Lothian have been sentenced for their role in the £20 million tax fraud case. It follows four separate trials, with the final sentencing hearing having taken place on Monday (20 October 2025).

Leslie Thompson, of Chapman’s Brae, Bathgate, (DOB: 25/07/1962), was convicted of conspiracy to cheat the public revenue following trial one, which ended in March 2024 and was then jailed for six years.

He was also disqualified from acting as a director of any company for a period of 12 years and handed a three-year Serious Crime Prevention Order (SCPO) which begins when released from prison.

Beverley Thompson (wife of Leslie), also of Chapman’s Brae, Bathgate, (DOB: 22/12/1964), was convicted of money laundering.

On Monday 20 October 2025, Thompson was jailed for 24 months, suspended for 18 months, handed a 10-day rehabilitation activity requirement and ordered to complete 100 hours of unpaid work.

Andrew Collins (formerly Thompson, son of Leslie) (DOB: 06/06/1984), of Falside Crescent, Bathgate, entered a guilty plea on 22 July 2024 to conspiracy to cheat the public revenue.

He was sentenced to 22 months in jail, suspended for two years, given a rehabilitation activity requirement of up to 20 days and disqualified from acting as a director of any company for eight years.

34,200 families in Scotland avoid the Hallowe’en chills by using Tax-Free Childcare

  • More than 34,200 families in Scotland received an average of £100 towards their monthly childcare bills in June 2025
  • Working families encouraged to sign up to Tax-Free Childcare as UK Government top-ups totalled £57.7 million
  • Supporting the government’s mission to grow the economy and deliver on the Plan for Change

Working families are encouraged to sign up to Tax-Free Childcare ahead of the spooky school holidays to avoid tricky childcare bills as latest figures from HM Revenue and Customs (HMRC) show 34,255 families in Scotland got a savings treat in June.

Paying childcare bills through a Tax-Free Childcare account can save working families up to £2,000 per year for each of their children up to the age of 11 or £4,000 per year up to the age of 16 if the child is disabled.

HMRC is encouraging those yet to sign up for Tax-Free Childcare, to do it now to take advantage of savings on their half term childcare.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Hallowe’en doesn’t need to be a tricky time for childcare bills. Whether you’re working and have a child in a holiday club or taking time off and planning term-time care, paying your bills with Tax-Free Childcare can help. Go to GOV.UK to start saving today.”

Once a Tax-Free Childcare account is open, for every £8 parents deposit in their child’s account, the government tops it up by £2. Parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months towards their childcare costs.

In June, the government paid a total of £57.7 million in top-ups to Tax-Free Childcare accounts which means each family received, on average, more than £100 to be used towards their childcare bills.

Parents can use Tax-Free Childcare to help pay toward any approved childcare for their child – so that’s nursery for younger children or, for older children who are in school, wraparound childcare, after-school and holiday clubs.

Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in the account to use it whenever it’s needed. Any unused money in the account can be withdrawn at any time.   

Families could be eligible for Tax-Free Childcare if they:   

  • have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they receive up to £4,000 a year until 1 September after their 16th birthday   
  • the parent and their partner (if they have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average   
  • each earn no more than £100,000 per annum   
  • do not receive Universal Credit or childcare vouchers    

Visit GOV.UK to check eligibility and register for Tax-Free Childcare.

Tax-Free Childcare can be used alongside the free childcare hours, subject to eligibility. 

HMRC: 39,800 customers in Scotland have opened a Help to Save account

£220 million boost for the Help to Save club

  • 39,800 people on a low income in Scotland have opened a Help to Save Account
  • People can save up to £50 a month and get a 50% bonus on top
  • Part of Government’s mission to grow the economy and deliver on our Plan for Change

Help to Save customers have received more than £220 million in bonus payments, and HM Revenue and Customs (HMRC) is encouraging those eligible to sign up to take advantage of the scheme during UK Savings Week (22-26 September).

Help to Save is a government savings scheme offering low-income earners a 50% bonus on their savings. Customers can deposit between £1 and £50 each month and earn an extra 50 pence for every £1 they save.

It takes just a few minutes to check eligibility and open an account online on GOV.UK or via the HMRC app.

Savers who deposit the maximum of £2,400 over the four years of the duration of the scheme will get a £1,200 bonus, with it being paid straight into their bank accounts at the end of the second and fourth year.

Latest figures show that since the scheme started in September 2018 to April 2025, 39,800 customers in Scotland opened a Help to Save account and have paid a total of £39.8 million into their savings pots.

Economic Secretary to the Treasury, Lucy Rigby, said: “The Government’s Help to Save scheme has boosted the savings of over half a million people across the country to the tune of £220 million.

“We’re committed to helping families build financial resilience and putting more money in the pockets of working people.” 

Of those who have opened an account, 94% deposited the maximum amount into their nest egg each month.

The scheme, originally due to close in September 2023, has been extended and people have until April 2027 to open an account and start paying in. It has meant that to April 2025, more than 95,000 low-income earners have been able to open Help to Save accounts, who would have otherwise missed out.

 A total of 7,800 accounts were opened in April 2025 (the highest monthly amount since March 2023) when the scheme was expanded to include all working Universal Credit claimants.

Myrtle Lloyd, HMRC’s Chief Customer Officer said: “Millions have been paid out to people who are putting aside whatever cash they can spare each month – so don’t miss out on making the most of your savings. Go to GOV.UK to open your Help to Save account today.”

A fifth of customers have opened a Help to Save account via the HMRC app. People can use the app to keep track of their deposits and view their bonus payments.

Money can be paid into Help to Save accounts via debit card, standing order or bank transfer.

Antonia Stokes, Low Incomes Tax Reform Group (LITRG) Senior Manager, said: “The Help to Save scheme is a very attractive product for people on low incomes who want to get into a regular savings habit.

“Everyone who is eligible to take part in the initiative has the chance to earn a bonus on top of the money that they put in, and these bonuses can be increased by paying in the maximum amount allowed each month and making no withdrawals.

“Those who are eligible can still receive bonus payments, even if they can’t save the maximum, which makes it an attractive option for savers.”

Money can be withdrawn at any time, although this may affect the 50% bonus payments.

Find out more about Help to Save at GOV.UK.

Child Benefit action to save £350 million from claimants abroad

Child Benefit will be stripped from tens of thousands of people who have moved abroad in a major clampdown expected to save £350 million

  • A new specialist team is expected to stop over £350 million in Child Benefit fraud and error over the next five years.
  • The move follows a successful pilot where just 15 investigators stopped around £17 million in wrongful payments in under 12 months.
  • Thousands of people who left the UK but carried on claiming Child Benefit have already been removed from the system.

Child Benefit will be stripped from tens of thousands of people who have moved abroad in a major clampdown expected to save £350 million over the next five years.

A new specialist team will use international travel data to track if claimants have gone overseas, so are no longer entitled to the payments.

The move follows a successful pilot which has already removed 2,600 people from the system who had left the UK but continued to claim Child Benefit.

A team of just 15 investigators successfully prevented around £17 million being incorrectly paid out in under 12 months.

The government is rapidly expanding this highly effective unit as part of the Plan for Change. The new team will have over 200 people from next month, sending a clear warning to those trying to scam the system. 

Cabinet Office Minister Georgia Gould said: “This government is putting a stop to people claiming benefits when they aren’t eligible to do so.

“From September, we’ll have ten times as many investigators saving hundreds of millions of pounds of taxpayer’s money.

“If you’re claiming benefits you’re not entitled to, your time is up.”

Child Benefit is paid to over 6.9 million families, supporting 11.9 million children. It is one of the most widely accessed forms of benefit in the UK and is administered by HM Revenue & Customs (HMRC).

If a claimant is outside the UK for more than eight weeks, Child Benefit payments may stop unless there are exceptional circumstances. Claimants must inform HMRC if they are outside the UK for this length of time or longer.

The pilot was carried out by the Public Sector Fraud Authority, the Home Office and HMRC. Under the Digital Economy Act, they matched a random sample of 200,000 Child Benefit records with international travel data. 

Where the data suggested a claimant had left the country, specialist investigators from HMRC stepped in to perform their own checks before deciding whether benefits were being claimed incorrectly. The pilot was concluded in under 12 months and delivered savings of over one million pounds per investigator.

Alongside tougher checks, this renewed drive will raise awareness of the rules, recognising that some errors are genuine mistakes. Every case is reviewed by a human investigator and HMRC will reach out directly to families as part of any investigation to resolve matters swiftly.

This crackdown on fraud and error ‘protects hardworking families who play by the rules and ensures every pound of taxpayer money goes where it should’.

Parents urged to extend their teen’s Child Benefit claim online as deadline approaches

  • As teenagers get their exam results, parents are urged to renew their Child Benefit claim by 31 August for payments to continue in September
  • Parents can quickly and easily extend their Child Benefit claim via the HMRC app or online to guarantee their payments
  • Record numbers of parents of 16 to 19-year-olds staying in education or training have extended their Child Benefit online

With Scottish National and Higher exam results already known, HM Revenue and Customs (HMRC) is urging parents who know their teenager’s plans in September to extend their claim now to continue to receive Child Benefit.

More than 509,000 parents of teenagers, who are staying in full-time education or approved training, have already extended their Child Benefit claim. A record-breaking 67% have done it online to guarantee their payments will continue in September. Parents need to extend their claim by 31 August or payments will automatically stop.

Child Benefit is worth £26.05 per week – or £1,354.60 a year – for the eldest or only child and £17.25 per week – or £897 a year – for each additional child.

HMRC has written to 1.5 million eligible parents reminding them to extend their Child Benefit claim for their 16 to 19-year-old.

The quickest and easiest way to ensure payments continue is to extend via the HMRC app or online through the digital service.

Parents can also scan the QR code in their reminder letter which will take them straight to the digital service.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Teenagers can be expensive and Child Benefit is an important source of income for your household. As soon as you know what your teen is doing in September, don’t miss out.

“You can extend your claim in minutes through the HMRC app or online to ensure your payments continue.”

Child Benefit can continue to be paid for young people who are studying full time in non-advanced education as well as unpaid approved training courses. Visit GOV.UK for a full list of approved courses.

If either the claimant or their partner has an individual income of between £60,000 and £80,000, the higher earner will be subject to the High Income Child Benefit Charge. For families who fall into this category, the online Child Benefit tax calculator provides an estimate of how much benefit they will receive, and what the charge may be.

As part of the government’s Plan for Change, many families will soon have the option to use a new digital service to pay the charge directly through their PAYE tax code instead of filing a Self Assessment tax return.

The new service will cut red tape for eligible employed parents who are liable to the charge. Those who choose to pay through their Self Assessment can continue to do so.

Families who have previously opted out of Child Benefit payments can opt back in and restart their payments quickly and easily online or via the HMRC app

HMRC: Make everyday a playday with Tax-Free Childcare

  • This Playday (6 August), working families are encouraged to sign up for Tax-Free Childcare to save on their childcare bills.
  • Working families can save up to £2,000 annually when paying for childcare in 75,000 childcare settings across the UK.
  • Supporting the government’s mission to grow the economy and deliver on the Plan for Change by putting more money in the pockets of working people.

To mark Playday 2025 (6 August), HM Revenue and Customs (HMRC) is encouraging working families to save money by signing up to Tax-Free Childcare and using one of the thousands of facilities accepting it as payment.

Tax-Free Childcare means working families can save up to £2,000 annually for each child up to the age of 11, and £4,000 for a disabled child up to the age of 16, when they’re paying for their childcare.

There are now 75,000 childcare settings accepting Tax-Free Childcare as payment including nurseries, registered childminders, holiday activity clubs and, for when school starts back in September, before and after school clubs.

Playday is an annual celebration of children’s right to play, highlighting the importance of play in their health, wellbeing and development. 

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Whether your child is interested in football, climbing, crafting or dance, there’s a huge variety of childcare settings accepting Tax-Free Childcare.

“Children can learn something new and have fun with their friends while their parents save on their childcare bills. Visit GOV.UK to sign up today.”

Families yet to sign up for Tax-Free Childcare can do it now to pay for their summer activities or start paying into it ready for breakfast and after-school clubs when the new term starts. 

Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in the account to use it whenever it’s needed. Any unused payments can be withdrawn at any time.   

For every £8 deposited in a Tax-Free Childcare account, the government tops it up by £2, which means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months towards their childcare costs.

Families could be eligible for Tax-Free Childcare if they:   

  • have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they receive up to £4,000 a year until 1 September after their 16th birthday   
  • the parent and their partner (if they have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average   
  • each earn no more than £100,000 per annum   
  • do not receive Universal Credit or childcare vouchers    

   

Visit GOV.UK to check eligibility and register for Tax-Free Childcare.

Tax-Free Childcare can be used alongside the free childcare hours, subject to eligibility. 

New HMRC service announced for workers to take control of their tax affairs

New PAYE service announced to save around 35 million taxpayers’ time

  • New PAYE service to make tax system simpler and easier for around 35 million workers
  • At least 90% of customer interactions with HMRC to be digital by 2030
  • Reducing post and letters to save £50 million a year – equal to almost 1,500 full time nurses

Workers are set to take control of their tax affairs as the government announces a new online Pay As You Earn (PAYE) service for around 35 million UK taxpayers as HM Revenue and Customs (HMRC) sets out more than 50 measures to transform the UK’s tax and customs system.

The new online service for all PAYE taxpayers will make it simpler and easier to check and update their income, allowances, reliefs and expenses, and will be available via their Personal Tax Account or through the HMRC app.

This service forms part of HMRC’s Transformation Roadmap launched today that sets out ambitious plans to become a digital first organisation by 2030, with 90% of customer interactions taking place digitally.

The roadmap sets out more than 50 IT projects, services and measures that, once delivered, will transform the UK’s tax and customs systems, simplifying processes and making it easier to pay the tax that funds public services and deliver the government’s Plan for Change.

The plans to modernise the tax and customs system, introduce new AI technologies and work with third parties and intermediaries will make it easier for taxpayers, businesses and intermediaries to interact with HMRC.

The digital first approach will see HMRC automating tax wherever possible and offering new digital self-serve options across a number of tax regimes.

Alongside the new PAYE service, HMRC will save £50 million a year – the equivalent of almost 1,500 full time nurses – by moving customer letters and reminders to a digital first approach, reducing the reliance on paper correspondence, by the 2028 to 2029 tax year. Paper post provision will remain for critical correspondence and for the digitally excluded.

Increasing the use and investment in AI will enable customers to meet their tax obligations and allow HMRC to monitor the tax system in near real time. HMRC plans to introduce AI in work areas including:

  • HMRC advisers and caseworkers: using AI capability to automate call summaries and the use of internal GenAI Chat Assistants to support them in their work.
  • Digital assistants: developing new AI-powered features to help customers easily navigate HMRC services and improve the ability to update HMRC’s content and guidance on GOV.UK.
  • Compliance: delivering an automatic document identifier system for HMRC caseworkers to identify fraudulent documents during compliance activities by using a biometric likeness-liveness check.

HMRC will work with developers to create a set of principles which will set out HMRC’s expectations of how third parties use AI in software where it interacts with the department and the tax administration system. These principles will give developers the confidence to introduce AI functionality into their products in the UK and minimise the risk of those products introducing error or non-compliance.

James Murray MP, Exchequer Secretary to the Treasury, said: “We are going further and faster to make HMRC fit for the 21st century, including delivering a simpler and easier system for all PAYE workers.

“By 2030, taxpayers can expect a modern and innovative HMRC with cutting-edge AI, industry-leading customer service practices, and a laser focus on delivering taxpayer value for money by ensuring everyone pays their fair share.”

Mr Murray’s key priorities for the department are to improve day-to-day performance and the customer experience, reform and modernise the tax and customs system and to close the tax gap. As announced at the Spending Review 2025, £1.7 billion will be provided to HMRC over 4 years to fund an additional 5,500 compliance and 2,400 debt management staff – to ensure more of the tax owed is paid, to fund public services.

HMRC is focusing on tackling wealthy offshore tax non-compliance, with an additional 400 people set to work on wealthy offshore tax risks. This includes experts in private sector wealth management, who will help find and tackle non-compliance more effectively and train HMRC compliance staff.

JP Marks, HMRC’s Chief Executive and First Permanent Secretary, said: “The Government’s ambition is for a simpler tax and customs system and this roadmap sets out how HMRC will deliver a first-class experience that feels different to their customers.

“By 2030, UK citizens will experience a tax administration system that is more automated, more focused on self-service, and better set up to get things right first time so they can fulfil their tax obligations.”

The Transformation Roadmap sets out timescales for delivery and HMRC is committed to reporting on progress. Work is underway to deliver some of the measures set out in the roadmap this tax year, including:

  • extending the rollout of the SMS confirmation service to Self Assessment appeals, complaint cases and some PAYE services.
  • improving Self Assessment registration service and streamlining the exit process for those customers who no longer need to file a Self Assessment tax return.
  • expanding the rollout of the voice biometrics pilot to make customer verification easier when calling HMRC’s helplines.
  • a new service to give employed parents, who are newly liable for the High Income Child Benefit Charge, the choice to pay it directly through their tax code without needing to register for Self Assessment.
  • launching an enhanced reward scheme for informants, targeting information on serious non‑compliance in large corporates, wealthy individuals, offshore and avoidance schemes. The new scheme will reward informants with compensation linked to a percentage of any tax taken.

Further measures and projects to be delivered as part of the roadmap include:

  • digitalising the Inheritance Tax service to provide a modern, easy-to-use system, that makes submitting returns and paying tax simpler and quicker.
  • launching a new service to allow agents to digitally submit information which may impact their client’s tax code.
  • delivering a Digital Disclosure Service to allow customers and intermediaries to correct mistakes, pay liabilities and penalties for all taxes and duties.
  • introducing an electronic trade documentation pilot to see how it could improve customs operations.
  • progressing the Verifiable Credentials pilot with US Customs and Border Protection to test the use of new internationally interoperable digital credentials and identity standards.

HMRC wants to incentivise taxpayers to pay their tax on time by simplifying and strengthening penalties. In the 2023 to 2024 tax year, HMRC collected 94.7% of the total tax due. Those who meet their obligations and pay their tax on time should not be disadvantaged by the minority who don’t follow the rules. HMRC will update on modernising behavioural penalties later this year.

New legislation will come into effect from April 2026 to tackle tax avoidance and fraud by umbrella companies. Many umbrella companies operate within the law but the dishonest few can mean taxpayers are left with large and unexpected tax bills. The legislation will make recruitment agencies that use umbrella companies legally responsible for accounting for PAYE on workers’ pay.

HMRC does not know how many billionaires pay tax in the UK

TAX THE RICH!

Westminster’s Public Accounts Committee (PAC) warns of lack of clarity over how much tax is paid or avoided by the very wealthy, as new report highlights significant opportunities to collect more revenue.

HM Revenue & Customs (HMRC) cannot identify how much tax is paid by UK billionaires. In a report on collecting the right tax from wealthy individuals, the Public Accounts Committee (PAC) calls on HMRC to publish its plan for increasing tax yield from wealthy taxpayers both domestically and offshore. 

Despite UK billionaires making up a relatively small number of people and the significant sums of money involved, the PAC was disappointed to find that HMRC cannot use the wide range of data it uses to identify wealthy people to provide transparency about the tax paid by the wealthiest.

A billionaire has wealth and assets 500x greater than a wealthy person who just meets HMRC’s definition* of ‘wealthy’, and so has huge potential on their own to affect how much revenue is available for public spending.

The PAC is seeking HMRC’s plan for improving its understanding of the wealth and assets held by billionaires, including how it might immediately start work on comparing available data on known billionaires, such as the Sunday Times Rich List, with its own records. 

HMRC’s has done well to ensure wealthy taxpayers comply with tax rules brought in an additional £5.2 billion of tax revenue in 2023-24. This is a significant increase from £2.2 billion in 2019-20.  However, the report notes that the scale of this success suggests either wealthy non-compliance has got worse, or that previous estimates of their tax avoidance were too low, and finds that HMRC needs to improve its assessment of the amount of tax that the wealthy avoid paying.  

The tax authority told the inquiry that the tax gaps* for wealthy people and for offshore wealth are particularly difficult to measure. Given these difficulties, and the deficiencies in HMRC’s information on wealth, the PAC concerned that HMRC is overly confident and optimistic in its estimate that the wealthy tax gap is only £1.9bn.

Its partial estimate of the offshore tax gap, of £0.3bn, seems far too low, particularly when compared with UK residents holding £849bn in offshore accounts in 2019. 

The PAC’s report finds that in 2023-24, there were only 25 criminal prosecutions of wealthy people and 456 penalties (down from 1,747 in 2022-23). This is despite the average time HMRC takes to close an investigation increasing every year between 2018-19 to 2022-23.

For investigations yielding more than £100,000, the average duration in 2023-24 was 40 months.

The PAC finds it particularly disappointing that HMRC has issued no penalties to enablers of tax evasion, despite acknowledging unscrupulous advisers often play a key role in helping the wealthy evade tax, and recommends HMRC assess whether it is using its powers to tackle non-compliance by the wealthy sufficiently, in particular, whether it makes sufficient use of available sanctions.  

Lloyd Hatton MP, Member of the Public Accounts Committee, said: “This report is not concerned with political debate around the redistribution of wealth.

“Our Committee’s role is to help HMRC do its job properly ensuring wealthy people pay the correct tax. While HMRC does deserve some great credit for securing billions more in the tax take from the wealthiest in recent years, there is still a very long way to go before we can reach a true accounting of what is owed. 

“We already know a great deal about billionaires living in the UK, with much information about their tax affairs and wealth in the public domain.

“So we were disappointed to find that HMRC, of all organisations, was unable to provide any insight into their tax affairs from its own data – particularly given that any single one of these individuals’ contributions could make a significant difference to the overall picture.

“We found a similar apparent lack of curiosity in how wide the tax gap is both for the very wealthy and for wealth stashed away offshore. 

“Our report shows that, however you slice it, there is a lot of money being left on the table. HMRC must, under its new leadership, begin collecting the correct amount of tax from the very wealthiest – and this must include wealth that is currently squirrelled away in tax havens.

“There is certainly room for improvement. We hope that HMRC uses both our recommendations and the new funding it has secured in this area to do so.” 

Crypto bros being forced to pay fair share of tax

  • New rules will help unmask anyone evading tax due on their crypto profits
  • UK crypto holders must provide personal details to crypto service providers from January 2026 or face penalties of up to £300
  • Aligns with government’s Plan for Change to ensure everyone pays their fair share of tax to fund vital public services

Public coffers are set for a boost as HM Revenue and Customs (HMRC) goes after crypto owners that aren’t paying their fair share of tax.

From January 2026, people who own crypto – like Bitcoin, Ethereum or Dogecoin – must give personal details to every crypto service provider they use to make sure they are paying the right tax.

Those who don’t comply risk a £300 fine from HMRC.

Once data is received from service providers, HMRC will be able to identify those who haven’t been correctly paying tax on their crypto profits – bringing in money that will help pay for frontline nurses, police, and teachers.

This is estimated to raise up to £315 million by April 2030 in tax revenue – the same amount needed to fund more than 10,000 newly-qualified nurses for a year.

It’s part of a major drive by HMRC to tackle non-compliance including the small minority who are deliberately evading tax due on their profits from crypto.

Service providers will begin collecting data on users’ activities from January 2026. Any service provider that fails to report this information, or submits inaccurate or incomplete reports, could also be charged a penalty of up to £300 per user by HMRC.

The new rules mean crypto service providers must collect and report:

  • Your name, address, and date of birth
  • Your tax residence
  • Your National Insurance number or tax reference
  • A summary of your crypto transactions

James Murray MP, Exchequer Secretary to the Treasury, said: “We’re going further and faster to crack down on tax dodgers as we close the tax gap and deliver on our Plan for Change.

“By ensuring everyone pays their fair share, the new crypto reporting rules will make sure tax dodgers have nowhere to hide, helping raise the revenue needed to fund our nurses, police and other vital public services.”

Jonathan Athow, HMRC’s Director General for Customer Strategy and Tax Design, said: “Importantly, this isn’t a new tax – if you make a profit when you sell, swap or transfer your crypto, tax may already be due. 

“These new reporting requirements will give us the information to help people get their tax affairs right. 

“I urge all cryptoasset users to check the details you will need to give your provider. Taking action now and having this information to hand will help you avoid penalties in the future.”

The new rules – known as the Cryptoasset Reporting Framework – will help HMRC identify those who need to pay tax on their crypto transactions.

They will also bring the UK into line with the international standard developed by the Organisation for Economic Co-operation and Development (OECD), enabling tax authorities to share information across participating countries.

Crypto users should already include any crypto gains or income in their Self Assessment tax returns. HMRC has introduced new dedicated sections to the capital gain pages to be completed from the 2024 to 2025 tax year.

Capital Gains Tax may be due when selling or exchanging crypto, while Income Tax and National Insurance could apply to crypto received from employment, mining, staking or lending activities.

Anyone unsure about their tax obligations can check if they need to pay tax when they receive or sell crypto on gov.uk.

They can also tell HMRC about unpaid tax on crypto using the cryptoasset disclosure service.

826,000 families boost finances with childcare savings

  • Almost 826,000 UK families shared £632.2 million in government top-ups towards their childcare bills with Tax-Free Childcare in the 2024 to 2025 tax year
  • Working families urged to sign up now to give their summer plans a financial boost
  • Supporting the government’s mission to grow the economy and deliver on the Plan for Change

Nearly 826,000 working families saved up to £2,000 per child with Tax-Free Childcare in the 2024 to 2025 tax year. The money helps families pay for their childcare, as part of the government’s Plan for Change to put more money in people’s pockets.

HM Revenue and Customs (HMRC) is encouraging those yet to sign up for Tax-Free Childcare, to do it now and give their summer plans a financial boost. 

Latest figures from HMRC show in March 2025, 36,095 families in Scotland used the scheme to save on their annual childcare bills, an increase of 4,925 families compared to the previous March. 

Working families who sign up to Tax-Free Childcare can boost their annual budget by up to £2,000 per child up to the age of 11 or up to £4,000 up to the age of 16 for a disabled child.

Parents can use the scheme to help towards the cost of approved childcare whether that’s nursery for younger children, or for older children – wraparound or after school care clubs during term time or holiday clubs for the long summer holidays ahead.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Summer can be an expensive time if you have children. Whatever you’re planning, Tax-Free Childcare can give your plans a welcome financial boost. Go to GOV.UK to start saving today.”

For every £8 deposited in a Tax-Free Childcare account, the government tops it by £2, which means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months towards paying for their childcare costs.

Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in the account to use it whenever it’s needed. Any unused money in the account can be withdrawn at any time.   

Families could be eligible for Tax-Free Childcare if they:      

  • have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they receive up to £4,000 a year until 1 September after their 16th birthday   
  • the parent and their partner (if they have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average   
  • each earn no more than £100,000 per annum   
  • do not receive Universal Credit or childcare vouchers       

Visit GOV.UK to check eligibility and register for Tax-Free Childcare.

Tax-Free Childcare can be used alongside the free childcare hours subject to eligibility.