10 Mar 2026

HMRC's large business directorate has doubled the amount of tax revenue it collects, according to the National Audit Office (NAO).

A hands-on approach to tax compliance for large businesses yielded £15.8 billion during 2024/25. That is double what the unit collected in 2021/22.

The large business directorate has a return on investment of £95 for every £1 spent on staff pay, which is four times higher than HMRC achieves across all taxpayers.

The tax gap for large businesses has steadily decreased over the long term, from £7.5 billion in 2005/066 to £5.8 billion in 2023/24.

Since 2006, HMRC has put 70 large businesses through its High Risk Corporates Programme, designed to tackle its most complex or riskiest cases. This has brought in more than £32 billion in extra tax. 

The NAO recommended that HMRC expands the hands-on approach with other businesses as well as improving its IT systems.

Gareth Davies, Head of the NAO, said: 'Through its large business directorate, HMRC has developed an efficient and effective approach to ensuring large businesses remain tax compliant. This has made a significant contribution to reducing the tax gap.

'HMRC should continue to explore whether this approach could usefully be extended to other complex and high-risk businesses.'