Every billionaire in the UK now has their own taxman

HMRC has unveiled a new initiative where it will assign a dedicated compliance manager to every billionaire which has a UK tax footprint. The initiative was announced in a new modernisation document published by HMRC on Wednesday (28 October).

HMRC identified over 200 billionaires with a UK tax footprint using HMRC data, public information, data shared by third parties and other countries.

The tax authority classifies billionaires as ‘individuals whose wealth HMRC estimates exceeds £1 billion and who have a UK tax footprint’. This includes those who are required to submit a UK Self-Assessment return, whether or not they are UK resident.

Each billionaire will now have a Customer Compliance Manager (CCM) who will reach out to start a voluntary discussion directly. Initial discussions will help build a shared understanding of the customer’s UK tax affairs and make subsequent engagement more focused and proportionate.

“CCM(s) provides a clear point of contact, builds a joined-up understanding of the customer and their connected interests, and coordinates relevant HMRC teams and specialists to resolve issues earlier, reduce duplication and ensure that HMRC’s response is coherent and proportionate,” HMRC said.

“CCMs are at the centre of HMRC’s understanding of the overall level of risk associated with a customer and in the minority of cases where deliberate non-compliance, avoidance or evasion is identified will support the deployment of HMRC’s full range of civil powers and criminal investigation capabilities.”

The tax authority noted that around 8,000 wealthy customers are already reviewed by CCMs each year to assess the level of engagement required. Of these, around 2,400 customers are allocated a CCM, supported by around 100 permanent CCMs and a wider network of tax, technical and compliance specialists.

It added that the nature and duration of oversight varies according to need, from ongoing engagement to targeted support around significant business, investment or transactional events.

“We will use improved insight to test whether CCM resource is directed where it adds most value and remains proportionate,” the group said.

“We will assess both the wider CCM approach and the specific experience of billionaires using customer surveys, compliance outcomes and operational insight. We will use the findings to improve how CCM resource is targeted, how oversight is delivered and how effectively the model supports earlier, more coordinated and proportionate intervention.”

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