Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how her Department will allocate the £1 billion additional funding for HMRC across tax gap initiatives.

HMRC will allocate the additional funding at Autumn Budget 2024 and Spring Statement 2025 to close the tax gap predominately to frontline staff and digital services, including:

• 5,500 additional frontline compliance officers
• 2,400 additional debt management staff
• investment in debt case management systems
• placing additional tax debts with private debt collection agencies
• delivering Making Tax Digital for income tax self-assessment
• digitalising the Inheritance Tax service to provide a modern, easy-to-use system, that makes submitting returns and paying tax simpler and quicker

As well as these investments, we introduced measures to:

• Increase the interest rate on unpaid tax
• Change the tax rules on liquidations of Limited Liability Partnerships
• Prevent non-compliance from the transfer overseas of UK tax-relieved pension funds
• Modernise and mandate registration of tax practitioners interacting with HMRC