Despite calls for more funding, HMRC staff numbers fell last year, with more people retiring and leaving the organisation than could be hired to replace them.

HMRC had 61,186 full time staff in 2023-24, revealed the latest HMRC annual report and accounts, down from 62,174 the previous year, and still hires 1,785 short-term contractors earning more than £245 per day.

HMRC said contractor hires comply with all IR35 legislation, but it is notable that over 120 of these ‘temporary off-payroll workers’ had been on contract for HMRC for more than two years, with 56 for more than four years.

Over the last year, HMRC hired 3,564 new staff, which was too low to replace the number of leavers which hit 5,154 or a staff turnover rate of 8.3%, including those who retired or went to other government departments.