In the Spring Statement 2025 HMG announced a package of measures that will affect VAT and other taxes. The aim is to close the tax gap and raise over £1 billion in additional gross tax revenue per year by 2029‑30.

Anti-fraud

HMRC is expanding its counter-fraud capability to increase the number of annual charging decisions for the most harmful fraud by 20%. Additional criminal investigations is intended to deliver a strong deterrent. This will include tackling those who undermine legitimate trade and small business, fraud committed by the wealthy, fraud facilitated by those in large corporations, and by individuals and companies who make it possible for others to hide money offshore.

Snitching

There will be a new HMRC reward scheme for informants will be launched later this year. This will target 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 as a result of their actions.

“Phoenixism”

HMRC, Companies House, and the Insolvency Service will deliver a joint plan to tackle those who use contrived insolvencies to evade tax and write off debts owed to others. This will include increasing the use of upfront payment demands, making more directors personally liable for company taxes, and increasing the number of enforcement sanctions.

Compliance

HMG will invest £87 million over the next five years in HMRC’s existing partnerships with private sector debt collection agencies to collect more unpaid tax debts. It will also invest £114 million over the next five years to recruit an additional 600 HMRC debt management staff. In addition, the Government will invest £100 million over the next five years to recruit an additional 500 HMRC compliance staff.

The government also published four consultations on:

• How HMRC can make better use of third‑party data to increase automation and close the tax gap.
• Proposals to strengthen HMRC’s ability to take action against those tax advisers who facilitate non‑compliance from their clients.
• A comprehensive package of measures to close in on promoters of marketed tax avoidance, whose contrived schemes leave their clients with unexpected tax bills.
• Options to simplify and strengthen HMRC’s inaccuracy and failure to notify penalties.