The number of HMRC investigations has dropped from 2,096 in 2019-2020 to just 529 in 2020-21 according to data from a freedom of information (FOI) request from law firm Boodle Hatfield.

The data shows that despite the marked drop off in investigations, HMRC had managed to recoup £60m, down from £63m last year, from investigations in the last 12 months.

This has stayed in line with the average annual tax take from investigations over the last four years, which sits around £62.5m.

HMRC stated that the yield from the investigations is ‘holding steady’ compared to previous years. The average yield for this tax year is £113,000 while last year it was £22,900. 

The tax authority stated that this aligns with its targets for compliance work as it investigates cases ‘where there is most risk, increasing the amount brought in by each case’.

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