Blog

MPs and campaigners have published a report calling for tougher penalties on tax dodging, greater scrutiny of tax reliefs and compulsory membership of a professional body for tax advisers.

Tackling tax crime is a tough job, and ministers and HMRC will need a “laser focus” if they are to clamp down on non-compliance. Simon York, until 2023 Director of HMRC’s Fraud Investigation Service, was giving the 2025 Chartered Tax Advisers Address, where he argued that greater collaboration across government and the private sector, more effective use of data and intelligence and a more aggressive focus on the enablers of tax evasion would maintain fairness and trust in the UK’s tax system.

Tourist taxes in Wales moved a step closer this week as Members of the Senedd (MS’s) debated the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill. A total of 98 amendments were proposed, with some of the key issues discussed including flexibility for local authorities, exemption for various groups and the timeline for the levy’s implementation.

MPs voiced concern about the current VAT threshold, suggesting that it creates a cliff edge for growth. The government responded by saying that the UK’s VAT threshold is the highest in Europe and the joint highest in the OECD, and that views are divided among businesses over its level.

On 12 June, the House of Commons Public Accounts Committee (PAC) examined HMRC’s strategy for taxing wealthy individuals, questioning HMRC officials on the extent of non-compliance among wealthy taxpayers and whether HMRC need to do more to close the ‘wealthy tax gap’.

CIOT and IFS hosted an online debate on 16 June 2025 on international tax co-operation with speakers Chenai Mukumba (Tax Justice Network Africa), Paul Oosterhuis (US-based international tax practitioner), Tim Power (HM Treasury and OECD Committee on Fiscal Affairs) and Tim Sarson (KPMG UK).

In a statement made on 10 June at the Senedd, the Welsh finance secretary set out a number of consultations that the Welsh government is currently conducting to make local taxes fairer, including the launch of a ‘practical investigation’ into valuation of land to help assess the feasibility of introducing land value tax in place of council tax and business rates.

In this guest blog, Shimeon Lee, policy analyst at the TaxPayers’ Alliance, discusses the rising tax burden on entrepreneurs and suggests a number of ways the government could use the tax system to encourage entrepreneurship.

At JP Marks’ first Treasury Committee grilling on 4 June, the new chief executive and other HMRC officials faced criticism over poor customer service performance and a phishing scam that saw scammers steal £47 million from online accounts. HMRC said that they were grappling with increasing demand, system constraints and a growing threat of digital fraud.

During a Westminster Hall debate on 3 June, MPs criticised the government's inheritance tax changes, suggesting that they would threaten family farm businesses' sustainability, potentially leading to job losses and reduced investment. A government minister disagreed, arguing that their approach is “fair and balanced”.