HMRC to ramp up tax investigations targeting high earners

HMRC is preparing to launch a wave of new tax investigations targeting high-income earners and individuals with substantial assets, according to new information obtained under the Freedom of Information Act.

The move, supported by the Labour government, forms part of a wider compliance push that will see an additional 400 specialist officers recruited over the next four years.

These staff will bolster HMRC’s ability to scrutinise taxpayers with incomes above £200,000 or assets exceeding £2 million.

According to HMRC data, more than £1.5 billion in tax revenue was collected from wealthy individuals in 2024—double the previous year’s figure—under the government’s stepped-up enforcement strategy.

The expanded compliance programme will draw on advanced data analytics, including the tax authority’s proprietary Connect system, which cross-references income and asset data from multiple public and private sources to flag anomalies.

The Labour government has said the measures are intended to narrow the tax gap and ensure wealthier taxpayers contribute their fair share.

It expects the expanded enforcement approach to bring in an additional £500 million by 2030, forming part of a broader strategy to raise £7.5 billion in annual revenue by the end of the decade.

HMRC stated:

“It’s our duty to ensure everyone pays the right tax under the law, regardless of wealth or status. The government is delivering the most ambitious ever package to close the tax gap and bring in an extra £7.5 billion for public services per year by 2029 to 2030.”

But tax professionals are warning that the shift could result in a significant increase in compliance activity for high earners and entrepreneurs.

Ian Robotham, Partner at Pinsent Masons, which submitted the FoI request, said:

“HMRC has been set some very hard targets for extra tax collection by the chancellor. It is hard to see how they can achieve those targets without a sharp rise in tax investigations into the wealthy.”

HMRC insists its compliance teams are committed to helping taxpayers meet their obligations and ensuring public confidence in the fairness of the system.

But the scale of the new compliance targets, combined with increased staffing and technology tools, is expected to result in more detailed scrutiny for thousands of individuals and mid-sized businesses.