20
HMRC plans significant investments in data, AI, and expertise to improve compliance targeting.
Recommendation
HMRC told us that the investment it secured as part of its recent funding settlement will help improve its data and understanding of the risks and better target its compliance activity so that, when it opens a case, it has 34 Q 87 35 C&AG’s Report, paras 3.10, 3.15-3.16 36 Qq 93, 104 14 a higher likelihood of securing the yield.37 It plans to bring in more wealth management experts to help the wealthy team’s understanding of wealth planning. It said it will also invest in its case management system and digitise the Inheritance Tax regime, which will help case workers to access data in a more timely and effective way. HMRC said it also plans to invest in artificial intelligence (AI), which it already uses in some way in the form of predictive analytics and machine learning. It said that AI presents a significant opportunity to improve productivity, through improved targeting and risking and optimising digital capabilities, which HMRC would expect to realise.38 Compliance investigations
Government Response
A response document is linked to this report, dated 15 October 2025. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Report
40th Report - Collecting the right tax from wealthy individuals
16 Jul 2025
HC 827
Addressee Bodies
HM Treasury
Timeline
Recommendation age
1.2 yr
Report published
16 Jul 2025