HM Revenue and Customs (HMRC) announced today that it collected a record £517.7 billion in tax in 2014-15 (an increase of £12 billion on the previous year), as a result of economic growth and the continued crackdown on tax evasion and avoidance.
The figures were among the achievements set out in HMRC’s Annual Report and Accounts for 2014-15, which were published today.
Speaking at HMRC’s annual stakeholder event, attended by more than 100 leading stakeholders from the financial world, tax agencies, charities and the media, Chief Executive Lin Homer said: “Our strong performance last year provides very firm foundations for the challenges of transforming HMRC into a smaller, more highly-skilled, digital and efficient organisation and for meeting the Chancellor’s new target of securing £5 billion a year of additional compliance yield by 2019-20.”
The Annual Report and Accounts highlights that HMRC:
- achieved £210 million in cost efficiencies last year, through continuing to reduce estates, workforce, IT and procurement costs. This brings total sustainable cost savings over the past four years to £991 million – exceeding the target by £25 million.
- secured and protected a record £26.6 billion in additional compliance yield, by continuing to crack down on those who cheat the tax system. This is £8 billion more than in 2011-12.
- handled 72.5 per cent of 65 million customer calls (down from 79 per cent in 2013-14) and 70 per cent of the 15 million items of customer post received processed within 15 working days (down from 83 per cent in 2013-14).
- implemented big initiatives and flagship policies for customers, including:
- a new Needs Extra Support telephone and mobile adviser service to support vulnerable customers
- a £2,000 Employment Allowance for more than a million small employers.
- prosecuted 1,289 cases, predominately for tax-related crimes — securing a collective total of 407 years in prison sentences.
- protected £9.79 billion in tax through successful litigation.
- secured important new tools, including Accelerated Payments powers, which brought in £800 million from tax avoiders last year, and the Diverted Profits Tax, which will shortly secure more tax from multinationals which try to move their profits to other countries.
- reduced error and fraud in the tax credit system to 4.4 per cent – the lowest level ever.
Lin Homer added: “Our customer service levels slipped this year, but the work we are already doing on digitising our services, using real-time information, and creating online tax accounts for individuals and businesses will help us improve customer service as well as improve voluntary compliance.
“Our plans to invest in our people’s skills, data and technology, and new powers announced by the Chancellor will further help us to meet the revenue and efficiency challenges in the Summer Budget.”
Notes to Editors
- The HMRC Annual Report and Accounts 2014-15 can be found at https://www.gov.uk/government/publications/hmrc-annual-report-and-accounts-2014-to-2015
- Follow HMRC Press Office on Twitter @HMRCpressoffice
- HMRC's Flickr channel: http://www.flickr.com/hmrc.gov.uk
Issued by HM Revenue & Customs Press Office
HM Revenue & Customs (HMRC) is the UK’s tax authority.
HMRC is responsible for making sure that the money is available to fund the UK’s public services and for helping families and individuals with targeted financial support.