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HMRC has increased the number of compliance staff by over 3,000 in the past year alone in a bid to reverse the sharp decline in tax revenue from compliance work, according to data obtained by Price Bailey.
The firm found that under the Freedom of Information Act, HMRC has recruited 3,084 additional staff to its customer compliance unit since 2021/22, a 12% rise in a single year.
The number of tax inspectors in the Fraud Investigation Service (FIS), an elite unit which sits within the customer compliance division, has also increased by 539 staff in the last year alone, rising from 4,386 in 2021/22 to 4,925 in 2022/23.
The data revealed that the number of staff working in customer compliance in the three highest grades increased by 344 since 2021/22 from 3,197 to 3,541.
According to the firm, many of the higher-grade staff recruited are “likely” to be experienced tax professionals from the private sector and will lead complex tax enquiries.
Andrew Park, partner at Price Bailey, said: “The drop off in compliance activity is undermining the deterrent effect of HMRC’s work. There is growing pressure on HMRC to catch up on compliance activity and this hefty increase in staffing levels suggests that the number of targeted investigations should significantly rise in the coming years.
“HMRC has claimed that the loss of experienced staff has contributed to the decline in compliance activity, but these numbers clearly show such people have been replaced. While it may take a while for new recruits at senior grades to get up to speed, their expertise should start yielding results.”
He added: “The Fraud Investigation Service is like the special forces of Customer Compliance. It comprises many of the most highly qualified and experienced staff. The substantial ramping up of FIS investigators suggests that HMRC means business.”
