The UK’s tax authority has come under fire from Parliament for failing to track how many billionaires are paying tax in the country, raising concerns about transparency and fairness in the system.
In a damning report released on Tuesday, the Public Accounts Committee (PAC) criticised HM Revenue and Customs (HMRC) for having no reliable method to monitor the tax contributions of the ultra-wealthy, despite the small number of individuals involved and the significant revenue at stake.
“There is much public interest in the amount of tax the wealthy pay,” the report stated. “People need to know everyone pays their fair share.”
Committee members expressed disappointment that HMRC is unable to provide data on billionaire taxpayers from its own systems. They noted that even one billionaire’s contribution could have a major impact on public finances.
“This is not about political debates over wealth redistribution—it’s about ensuring HMRC is doing its job,” said PAC member Lloyd Hatton. “They have made progress in collecting tax from the wealthiest in recent years, but there’s clearly a long way to go.”
The committee recommended that HMRC adopt more sophisticated tracking tools, including artificial intelligence and external sources such as The Sunday Times Rich List, to better understand and monitor high-net-worth individuals. MPs cited the example of the US Internal Revenue Service, which uses Forbes 400 data to flag potential tax liabilities.
Currently, HMRC dedicates around 1,000 staff to handling the tax affairs of the UK’s wealthiest individuals, with an additional 400 roles in the pipeline to strengthen compliance and enforcement—particularly around tax evasion prosecutions.
In response, a government spokesperson defended HMRC’s efforts, saying, “The government is determined to make sure everyone pays the tax they owe. Extra resources announced in the recent spending review will allow us to significantly step up our work on closing the tax gap among the wealthiest.”
The report lands amid growing public concern over offshore wealth, tax avoidance schemes, and broader inequality in the tax system. With the government under pressure to raise revenue without increasing taxes on the wider population, ensuring that the ultra-rich pay their fair share has become a political priority.
While HMRC has increased enforcement activity in recent years, the PAC warned that the department still lacks the necessary technology, data strategy, and ambition to deliver full accountability at the top end of the wealth ladder.
As scrutiny intensifies, MPs are urging HMRC to modernise its approach and ensure the tax system is both fair and effective at every level.
