UK tax authority assigns managers to more than 200 billionaires — The Guardian

UK tax authority HM Revenue and Customs is assigning dedicated tax compliance managers to more than 200 billionaires with a tax connection to the country. The measure is part of a campaign to reduce the tax gap among wealthy people and, according to the department’s estimate, is expected to generate at least £500 million in additional revenue.

Dedicated managers for billionaires

As The Guardian reports, HMRC has for the first time compiled a list of billionaires required to pay tax in the UK, regardless of whether they officially reside there. Each of them will be assigned a customer compliance manager, who will coordinate the department’s interaction with the taxpayer concerning their tax affairs.

HMRC said billionaires’ cases often involve several types of tax, legal entities and different jurisdictions. The managers will offer voluntary discussions before tax returns are filed in order to better understand such individuals’ tax affairs in the UK and more accurately arrange further engagement.

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Technology for monitoring

HMRC also plans to use new technologies to monitor wealthy individuals — those whose income exceeded £200,000 or whose assets amounted to more than £2 million in any of the past three years. The department will use enhanced analytics, automated alerts and artificial intelligence to identify risks earlier and direct tax compliance measures where they will have the greatest impact.

HMRC estimated the tax gap among wealthy taxpayers for 2024–2025 at £3.6 billion, or 6% of the total tax gap in the UK. According to the department, the new measures are expected to provide at least £500 million as part of a broader plan to raise £10 billion in additional tax revenue by 2030.

The initiative was announced more than a year after members of Parliament’s Public Accounts Committee criticized HMRC for having an insufficient understanding of tax compliance among approximately 1.3 million wealthy taxpayers.