HMRC recovered 23% more tax per investigation into small businesses and individuals, reaching £24,700 on average in 2024-25, up substantially from £20,100 the previous tax year.

A total of 255,000 investigations into small businesses and individuals conducted by HMRC last tax year resulted in the discovery of unpaid tax, either purposely or by mistake. Following decisions in these enquiries, the tax authority was able to recover a record £6.3bn in unpaid tax, revealed a freedom of information request by UHY Hacker Young.

With SMEs accountable for the largest share of the annual tax gap, HMRC has been under pressure to deal with the issue more effectively. The latest results show a definite improvement in recovery rates, and at the same time bring a warning for taxpayers to ensure their tax affairs are in order.