HMRC fails to track tax paid by the super-rich, warn MPs

HM Revenue and Customs has been sharply criticised by parliament's spending watchdog for being unable to track how many billionaires pay tax in the UK.

- Richard Partington

In a highly critical report on the collection of tax from wealthy individuals, the influential Public Accounts Committee (PAC) said HMRC could not say how much the super-rich either contributed to the exchequer or avoided.

Highlighting "significant opportunities to collect more revenue", it said the lack of clarity risked damaging public confidence and called on HMRC to take immediate action.

The government faces growing demands to increase taxes on wealth after Labour's welfare U-turn this month raised fresh questions over the health of the public finances.

Ministers have warned of "financial consequences" after the backtracking on disability benefits and winter fuel payments for pensioners, which cost over £6bn.