At RPGCC, we know that tax compliance is one of the biggest concerns for our clients. As HMRC ramps up its enforcement activity, subscribing to our Annual HMRC Tax Investigations Scheme has never been more important.
Our scheme renews on 1 November 2025 for the 2025/26 year — and we want to make sure our clients understand why this protection matters.
Did you know that HMRC tax investigations are increasing sharply?
In November 2024, the number of tax prosecutions rose by 19% compared to the previous year, reaching a three-year high of 300 prosecutions in the first nine months alone. While fewer than 1% of tax investigations lead to prosecution, the time, cost, and stress of dealing with HMRC enquiries can be significant.
Typically, HMRC conducts around 78,000 tax investigations per quarter. However, in the last quarter alone, they opened 93,000 cases — a clear sign of their more aggressive approach to compliance.
This surge comes on the back of an extra £1.4bn in government funding, earmarked to expand HMRC’s compliance teams. Chancellor Rachel Reeves told business leaders at the 2024 CBI conference:
“If we want to tackle fraud in HMRC, then we’ve got to put a load more money in to have people manually chasing up these cases.”
The message is clear: expect more HMRC tax investigations, more scrutiny, and more demands for information.
What is the tax gap and what are HMRC’s priorities?
HMRC recently published its 2023–24 tax gap figures, estimating that the UK tax gap stands at 5.3% of total theoretical tax liabilities, or £46.8 billion.
Key takeaways from these figures include:
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Corporation Tax has the largest tax gap at 15.8%, representing 40% of the total gap.
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Small businesses account for 60% of the overall tax gap.
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VAT and income tax gaps have reduced in recent years, but still represent billions in unpaid tax.
With these figures in hand, it is clear why HMRC is under pressure to clamp down on perceived tax shortfalls and launch more HMRC tax investigations.
What about HMRC’s focus on Child Benefit?
Beyond business taxes, HMRC is widening its enforcement scope. The government recently announced a major clampdown on fraudulent child benefit claims from individuals living abroad. A pilot programme stopped £17m in incorrect claims, and with 200 new investigators being recruited, the government expects to save £350m over the next five years.
This is a reminder that HMRC’s remit goes beyond just Corporation Tax or VAT — they are examining every area where tax or benefits could be misclaimed.
Why we believe our clients need protection from HMRC tax investigations
With HMRC’s investigations on the rise, subscribing to our Tax Investigations Scheme is a smart move. The scheme ensures that if HMRC opens an enquiry into your tax affairs, our professional fees are covered when we defend you. Sadly, just engaging us as your tax professional does not protect you from HMRC and we have no idea of knowing whether HMRC will target you now, next year, every year or never.
What we do know is that without cover, the costs of responding to HMRC — whether for a simple query or a complex investigation — can quickly add up. Even if you’ve done nothing wrong, the burden of proving your position is on you, and professional support is essential and we cannot reiterate this enough.
Why should you act now?
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HMRC opened 93,000 cases last quarter – up significantly from their usual average.
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The government has committed £1.4bn to fund more investigations.
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The tax gap is £46.8bn — and HMRC is under political pressure to close it.
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Prosecutions are up 19% year-on-year, signalling a tougher stance.
The risks of investigation are higher than ever. Protect yourself and your business by joining our HMRC Tax Investigations Scheme for 2025/26, which renews on 1 November 2025.
To find out more or subscribe, please contact us at hello@rpgcc.co.uk and a member of our team will be in touch, alternatively please contact your usual RPGCC adviser or our Tax Team today.
HMRC Tax Investigations, read more….
From 1 November 2025 you will be able to subscribe to our 2025/2026 HMRC Tax Investigations Scheme online via our secure portal. Remember, HMRC do not need a reason to open a tax enquiry into your affairs and the costs associated with a HMRC tax investigation can be substantial, even if you have done nothing wrong and no additional tax is considered due.
RPGCC’s insurer backed HMRC Tax Investigations Service provides you with complete peace of mind that should HMRC select you, and launch a tax investigation upon you or your business (or both), our professional tax advisers will be on hand to assist you, every step of the way.
For 2025/2026 our tax investigation service continues to include free access to the Business Hub which provides you with access to a range of documents, templates and advice designed to help you grow and manage your business with confidence. You can subscribe or resubscribe today using a debit or credit card through our online portal if you are a private client, standard limited company or sole trader in just a few clicks
