- HMRC recovered less unpaid VAT (£10.8bn) in 2024-25 than the previous year (£11.3bn), despite increasing investigations.
- Investigations into medium-sized businesses rose by over 33%, but VAT recovered from them fell by 20.5%; for large firms, recoveries dropped 8.6%.
- Only individuals and small businesses saw an increase in VAT recovered (up 4.3% to £1.9bn).
- The shortfall complicates Chancellor Rachel Reeves’ efforts to address a £50bn public finance gap.
- Experts warn that HMRC’s aggressive tactics may wrongly target innocent firms.
Source: pressreader.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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