HMRC Chnages in Spending Review

The Chancellor announced several changes to HMRC in her recent spending announcement . The 3 most significant changes were:

Spending £1.7bn over a 4 year period to employ 7,900 additional HMRC staff in compliance and debt collection areas. This is forecast to collect an additional £7.5 billion per year by 2029/30. If the net savings is so great, it does beg the question as to why the UK government did not make this change many years ago.

Spending £500m on digital upgrades to HMRC’s systems, in order to achieve at least 90% of interactions with taxpayers being by digital methods by 2029/30.

Reducing the number of letters sent by at least 75% by 2028/29.