UK Tax Scandal: £850 Billion Hidden Offshore While HMRC Struggles to Track Billionaire Taxpayers

A jaw-dropping £849 billion is believed to be hidden in offshore accounts—yet HMRC still doesn’t know how much tax UK billionaires are paying, or even who many of them are.

The Public Accounts Committee (PAC) is calling for urgent reform, demanding that HMRC tighten its grip on the wealthiest individuals amid shock revelations of tax gaps and sluggish enforcement.

Despite increasing wealth compliance revenue by £3bn over the last four years, the PAC warns that either non-compliance is getting worse—or previous tax loss estimates were wildly optimistic.

How Can HMRC Not Know What Billionaires Owe?

The PAC was stunned that HMRC has no solid data on how much tax the UK’s 156 billionaires are paying—even though rich lists and public financial data are easily accessible.

“There’s a lack of curiosity,” the report concludes, “on just how wide the tax gap is—especially offshore.”

The last official figure for offshore tax evasion was just £300 million—a figure the PAC says is “implausibly low” considering the near-£850 billion stashed abroad.

The Numbers Don’t Lie

46% of HMRC compliance checks in 2023–24 produced no additional tax yield.

Just 25 led to a criminal prosecution.

A mere 20% increase in criminal charges equals only five more wealthy individuals facing action.

These stats reveal a shocking level of inefficiency, with millions spent on investigations that go nowhere—leaving the wealthy unchecked.

What the PAC Wants Now

The PAC has issued a clear demand to HMRC:

Publish a plan for raising more revenue from wealthy taxpayers—both domestic and offshore.

Create new taxpayer categories, particularly for those earning £1m+ annually.

Measure and share exactly how much tax is at risk from these individuals.

Offer full transparency to the public.

Trust in HMRC is at an all-time low. British taxpayers deserve to know that everyone—especially billionaires—pays their fair share.

What This Means for You

If you're a high-net-worth individual or own a business, it's more critical than ever to ensure your tax affairs are 100% compliant. As HMRC ramps up scrutiny, the cost of mistakes—or perceived underpayment—can be high.

At The Tax Faculty, we help clients stay fully compliant while ensuring they never pay more tax than legally necessary. Whether you need offshore tax guidance, compliance advice, or a full accounting strategy, our expert team is here for you.

✅ Book a free consultation today—we’ll work around your schedule.

Stay protected. Stay informed. Stay ahead.

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Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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