The head of HM Revenue and Customs (HMRC) has announced a major shift in the tax authority's operations, warning of a significant increase in investigations targeting UK households and businesses. John-Paul Marks, the First Permanent Secretary and Chief Executive, outlined the plans during an evidence session with the influential Treasury Committee on Tuesday, 13 January 2026.
Digital Transformation and Increased Scrutiny
Appearing before MPs, Marks confirmed that HMRC is embarking on a period of substantial change. A core element of this will be an increase in the amount of chargeable decisions and investigations conducted by the department. This move is part of a broader strategy to boost compliance and recover unpaid tax.
He linked this heightened scrutiny to a parallel digital transformation, heavily reliant on third-party data and advanced risk assessment techniques. "We've got Making Tax Digital rollout through this period as well, to commence from the Spring," Marks stated, signalling a continued push towards fully digital tax records.
Tackling the Tax Gap and Security Threats
The executive provided context for the crackdown by referencing the tax gap – the difference between tax owed and tax collected. He cited Office for Budget Responsibility (OBR) forecasts suggesting the gap will fall in the coming years, with HMRC's compliance packages aiming to secure an additional £10 billion in tax revenue that would otherwise have been lost.
Marks also addressed growing concerns over cyber security and organised crime, noting the tax system operates in a high and constantly changing threat environment. "Our plans could always be disrupted by some sort of malicious attack that we have to handle," he cautioned, while assuring the committee that HMRC is working to improve its underlying resilience.
A 'Kinder' HMRC and Support for the Vulnerable
When questioned by Committee Chair Dame Meg Hillier about his public commitment to fostering a kinder environment at HMRC, Marks emphasised this applied to both staff and customers. He stressed the importance of fairness and data security, principles embedded in the department's charter.
On customer service, Marks revealed that around 80% of customer interactions are now digital, up from approximately 75% a year ago, with a target of 90% by 2030. He firmly denied any plans to shut phone lines to force this digital shift. For vulnerable customers, HMRC is working with 11 voluntary sector partners across the UK to provide additional advocacy and support, ensuring no one is left behind in the digital transition.
The session, which also featured other senior officials like Cerys McDonald, Director of Individuals Policy, underscores HMRC's dual focus: ramping up enforcement using digital tools while attempting to maintain supportive services for all taxpayers. The coming years are set to see a more assertive approach to tax collection as the authority seeks to close the multi-billion pound tax gap.
