According to figures obtained by the Bureau of Investigative Journalism, prosecutions of professionals who help clients evade tax have dropped by more than 75% in the past five years, with fewer than five cases brought in 2023/2024.
Targeting “enablers” – including wealth advisers and tax planners who knowingly assist in tax evasion – is meant to be a key part of HMRC’s enforcement strategy. However, enforcement has declined significantly since its peak in 2018/2019, when 16 enablers were prosecuted. That figure was initially reported as 29 in response to a parliamentary question, but HMRC has since admitted this was incorrect.
The exact number of prosecutions in the most recent year has not been disclosed, with HMRC citing privacy concerns and the risk of identifying individuals.
This sharp decline mirrors a broader fall in enforcement across HMRC’s teams, which have faced disruption from both Brexit and the Covid pandemic. In 2023, the Observer reported that total prosecutions following HMRC investigations had dropped by over two-thirds in five years. No company has yet been prosecuted under powers introduced in 2017 to hold firms accountable for enabling tax evasion.
Labour has pledged to recover billions in lost revenue through more vigorous enforcement. Its 2024 Autumn Budget included a £6.5 billion target for tax avoidance and evasion measures, with a further £1bn announced in the spring statement.
The tax gap – the shortfall between expected and collected tax – reached nearly £40bn in 2022/2023.
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