9th Report - Tax evasion in the retail sector

Select Committee
Public Accounts Committee HC 355 12 February 2025
Report Status Government responded
Conclusions & Recommendations 27 items (10 recs)
Source View on Parliament website
Government Response (AI assessment · 25 of 27 classified)
Accepted 14
Accepted in Part 1
Acknowledged 9
Deferred 1
Clear

Recommendations

1 results
8 Accepted in Part
HMRC significantly underestimated additional tax revenue from online marketplace VAT liability legislation.
Recommendation
In January 2021 government introduced legislation making online marketplaces liable for VAT from overseas sellers, resulting in £1.5 billion of additional tax a year. This is five times greater than HMRC estimated at the time.15 We asked HMRC why this … Read more
Government Response Summary
HMRC will analyze the difference between original and current costings of the 2021 Online Marketplace Liability policy, and update its estimate of tax lost from VAT non-compliance, providing findings when sufficiently robust, with an update in September 2025 and a final report in April 2026; however, they may not be able to identify all the specific elements requested.
HM Treasury
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