UK tax system complexity rises, costing businesses billions and straining HMRC's budget.

The UK's tax system is becoming more costly and complex, with HMRC's administrative expenses rising by £563 million since 2019-20 to £4.3 billion in 2023-24. Businesses spend about £15.4 billion annually on tax compliance, and small businesses face particular challenges with digital self-assessment. The NAO reports poor service levels and calls for tax simplification to reduce costs and improve efficiency. The HMRC aims to modernize its systems but faces technical difficulties and cost overruns.

6 weeks ago
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