HMRC’s annual report shows that it spent over £1.5 billion on compliance activities in 2020–21.31 The rate of return from those activities varied across HMRC’s five customer groups in 2020–21 (Figure 2). Returns were highest from large businesses, with average yield of £60 for each £1 HMRC spent on compliance, and wealthy individuals (£16 to £1). Returns were much lower for compliance spending on individual customers (not included in the wealthy group) and small businesses. 27 Qq 136–138, HM Treasury, R&D Tax Reliefs Report, November 2021 28 C&AG’s Report, para 7, 1.22–1.23 29 Qq 18, 44–45 30 Qq 45, 50 31 HMRC, Annual Report & Accounts 2020–21, pages 42 and 43 14 HMRC Performance in 2020–21 Figure 2 HMRC’s compliance yield and spend by customer group 2020–21 Customer group Estimated Estimated spend on Average rate of compliance yield compliance activities return (ratio of yield from HMRC (to nearest £10 to spend) activities (to nearest million) £0.1 billion) Individual customers 2.6£bn 410£m 6.3:1 Wealthy individuals 3.0£bn 190£m 15.8:1 Small businesses 5.3£bn 480£m 11.0:1 Mid-sized 3.1£bn 260£m 11.9:1 businesses, charities and public bodies Large businesses 13.2£bn 220£m 60:1 Total £27.2bn £1,560m 17.4:1 Source: HMRC, Annual Report & Accounts 2020–21, pages 42 and 43