Reeves to announce new measures to crack down on tax dodgers

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Andrew Feinberg

White House Correspondent

Tax dodgers will be targeted by Rachel Reeves, who will say she “will not tolerate the minority” who avoid “paying what they owe”.

The Chancellor will announce that a further 200 new compliance officers have been offered roles at HM Revenue and Customs (HMRC) to begin in November as part of a plan to recruit 5,000 more taxmen over five years.

The move is part of a plan to close the £39.8 billion “tax gap” between what is owed and the amount actually collected.

Speaking at the Labour Party conference in Liverpool, she will say: “At a time of hard choices, I will not tolerate the minority who continue to avoid paying what they owe.

“If you make your home and do your business in Britain, then you should pay your taxes here too. Those are my values. They are the Labour Party’s values. And they are the British people’s values.

“That is why we will reform, modernise and invest in HMRC.

“We will give it the resource it needs to go after those who are avoiding or evading tax, and we will modernise it so we have a system that is fit for purpose.”

Under the plans, Exchequer Secretary James Murray will be appointed chairman of HMRC’s board from the beginning of next month to “strengthen political accountability and delivery” – the first time in HMRC’s history that the board has been chaired by a minister.

At the Budget on October 30, the Government will formally announce a consultation on the introduction of mandatory “e-invoicing” in the UK, allowing data to be automatically transferred between businesses.

The measure is intended to reduce burdens for businesses and contribute to closing the tax gap.

HMRC is also set to publish a plan for increased digitisation to reduce demand on its phone services by spring 2025.

Last year, HMRC only answered two-thirds of calls to its phone advisers, against a target of 85% and performance of 71% the year before.