Budget 2023: 14-year sentences for tax fraud

Jail sentences of up to 14 years will be introduced for tax fraudsters, while more funding has been set aside for HMRC to tackle tax evasion

The government has stated that it will ‘double the maximum sentences for the most egregious cases of tax fraud from seven to 14 years’.

It will also consult shortly on the introduction of a new criminal offence for promoters of tax avoidance who fail to comply with a legal notice from HMRC to stop promoting a tax avoidance scheme.

The government is also investing a further £47.2m to improve HMRC’s capability to collect tax debts, including supporting those who are temporarily unable to pay.

Dawn Register, head of tax dispute resolution at BDO said: ‘It’s pleasing to see more resources earmarked for HMRC in the Budget. This is specifically targeted to debt management and collecting taxes that are due. 

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