HM Revenue and Customs (HMRC) has been heavily criticised by MPs for not knowing how many billionaires pay tax in the UK, despite the limited number of individuals involved and the potentially vast sums at stake.
In a new report published by the Public Accounts Committee (PAC), MPs warned that HMRC must do more to understand and ensure how much the wealthiest are contributing to the public purse.
The report revealed that HMRC currently has no reliable method of tracking billionaire taxpayers, even though public interest in how much the ultra-wealthy contribute has never been higher.
“There is much public interest in the amount of tax the wealthy pay,” the report noted. “People need to know everyone pays their fair share.”
PAC member Lloyd Hatton said the issue was not about political arguments over wealth redistribution but about making sure HMRC is fit for purpose.
“This is about ensuring wealthy people pay the correct tax,” said Hatton. “While HMRC deserves some credit for increasing the tax take from the wealthiest in recent years, there’s still a very long way to go.”
The committee expressed disappointment that HMRC could not provide data on billionaire tax arrangements from its own systems, suggesting that “any single one of these individuals’ contributions could make a significant difference to the overall picture”.
MPs recommended that HMRC draw on sources like artificial intelligence and The Sunday Times Rich List to create a clearer understanding—citing the US Internal Revenue Service, which uses the Forbes 400 to track high-net-worth individuals.
At present, around 1,000 HMRC staff are dedicated to the tax affairs of the UK’s wealthiest individuals, though an additional 400 roles are being funded to step up this work, with a particular focus on increasing the number of tax evasion prosecutions.
A government spokesperson said: “The government is determined to make sure everyone pays the tax they owe. Extra resources were announced in the recent spending review which allows us to significantly step up our work on closing the tax gap among the wealthiest.”
The report comes amid growing scrutiny of offshore wealth, tax planning schemes and perceived inequality in the tax system. With the public finances under strain and a heightened focus on fairness, MPs are urging HMRC to be more ambitious in monitoring and collecting tax from the ultra-wealthy.
While recent years have seen a notable rise in HMRC’s enforcement efforts, the PAC says the department still lacks the tools, technology, and strategy to provide a full accounting of what billionaires owe—and what they are actually paying.
As pressure mounts on the Treasury to boost revenues without raising taxes on the general population, increasing transparency and compliance at the very top of the wealth ladder is becoming a political and economic imperative.