UK Inquiry Tracker

Large business tax compliance

Public Accounts Committee Open Inquiry

Opened: 12 Dec 2025 Parliament page

Taxes from the nation’s large businesses account for around 40% of the total tax revenue collected by HM Revenue & Customs, while representing less than 0.1% of UK business. HMRC’s large business directorate works with approximately 2,000 of these businesses (typically those with an annual turnover of more than £200m) … Read more Taxes from the nation’s large businesses account for around 40% of the total tax revenue collected by HM Revenue & Customs, while representing less than 0.1% of UK business. HMRC’s large business directorate works with approximately 2,000 of these businesses (typically those with an annual turnover of more than £200m) to make sure they pay the right tax. This more hands-on approach to these businesses is due to their size, complexity, and the amount of tax at stake. The Public Accounts Committee’s (PAC) 2016 report on corporate tax settlements called on HMRC to lead the way in pressing for changes in international tax rules to prevent aggressive avoidance by multinational companies. It further stated that the tax authority should consult widely on the case for changing rules that protect corporate taxpayer confidentiality, to make the tax affairs of multinational companies open to public scrutiny. These calls for greater public transparency were backed at the time by senior members of national parliaments in Europe. The National Audit Office in 2026 publishes its report examining whether HMRC’s approach to the taxing of large businesses is delivering value for money. Proceeding from the NAO’s findings, the PAC will take evidence from senior HMRC officials as it scrutinises the processes surrounding large business tax compliance. If you have evidence on these issues, please submit here by 23:59 on Monday 30 March 2026. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. The Committee decides what information to publish and how. You can request anonymity or confidentiality when you send evidence, but it is for the Committee to say whether it will agree.It may treat submissions confidentially, even where you have not requested this. Please note that the Committee’s inquiry cannot assist with individual cases. If you need help with an individual problem you are having, you may wish to read the information on Parliament’s website about who you can contact with different issues. Show less

4 Recommendations

28 Conclusions

1 Report

1 Oral session

2 Letters

1 Event

Activity timeline 4 events

16 Jul
2026

Correspondence

Letter from the Chair to the Permanent Secretary of HM Revenue & Customs relating to Loan Charge, dated 16 July 2026

10 Jul
2026

Report published

9th Report - Large business tax compliance

6 Jul
2026

Correspondence

Letter from the Chief Executive and First Permanent Secretary at HMRC relating to Large Business Tax Compliance, 3 June 2026

18 May
2026

Oral evidence

Oral evidence session

Oral evidence sessions 1 session

18 May 2026

View on parliament.uk

John-Paul Marks · HMRC John-Paul Marks · HMRC Jonathan Athow · HMRC Nicole Newbury · HMRC Penny Ciniewicz · HMRC

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
9th Report - Large business tax compliance	HC 86	10 Jul 2026	32	Pending

Recommendations & Conclusions

32 results

2 Conclusion

9th Report - Large business tax co…

Despite having the power since 2016, HMRC has never put a business into special measures...

Despite having the power since 2016, HMRC has never put a business into special measures and has been slow to review whether the threshold for using it is set at the right level. HMRC says that the special measures regime … Read more

HM Treasury

Large business tax compliance

Activity timeline 4 events

Oral evidence sessions 1 session

Reports 1 report · click to expand

Recommendations & Conclusions

Despite having the power since 2016, HMRC has never put a business into special measures...

HMRC is taking too long to resolve compliance investigations and bring in the taxes owed...

HMRC is placing great reliance on an ambitious IT transformation programme to improve its compliance...

It is difficult for Parliament and the public to be assured that HMRC settles large...

Even with a new international minimum tax rate being implemented, the scale of risks posed...

The UK tax system is incredibly complex and there is more for HMRC to do...

On the basis of a report by the Comptroller and Auditor General, we took evidence...

Given the high return on investment HMRC gets from its compliance work with large businesses,...

HMRC is considering expanding the cooperative compliance model to businesses that currently sit within its...

Since 2016, HMRC has had the power to sanction large businesses who display continued poor...

HMRC told us that the special measures regime was designed to be a deterrent.

Given that HMRC has never used the special measures regime, we asked HMRC how it...

While HMRC believes that the special measures regime has served as an effective deterrent, it...

For those investigations into large businesses that completed in 2024–25, it took HMRC 17 months...

We asked HMRC what further work it was doing to reduce the time it takes...

HMRC explained that when litigation is involved, there are factors outside its control and it...

HMRC has a goal to modernise its IT infrastructure by 2030.

We asked HMRC when it expects to see the benefits of the extra investment in...

HMRC explained its IT transformation is in its early stages.

Disputes between HMRC and large businesses over how much tax is owed can be resolved...

We asked HMRC whether it could assure Parliament and the public that it had operated...

In correspondence received after the evidence session, HMRC told us that it uses media campaigns...

HMRC said that its governance processes are set out in its litigation and settlement strategy.

Large businesses artificially shifting profits from one country to another to pay less tax is...

The international nature of large businesses presents high risks to tax revenues, including from profit...

HMRC recognises that the Pillar 2 arrangements will introduce added complexity to the tax affairs...

Those businesses that fall under Pillar 2 will need support to comply with the new...

In January 2026, countries signed up to Pillar 2 negotiated a ‘side-by-side’ agreement with the...

Legal interpretation is a primary driver of the large business tax gap, accounting for around...

We asked HMRC why it cannot simplify tax rules to make it easier for businesses...

The complexity in the tax system also creates additional burdens for both HMRC and taxpayers.

HMRC told us that it aims to reduce the compliance burden on customers by automating...

Correspondence 2 letters