Rising Costs Due to Tax System Complexity


Rising Costs Due to Tax System Complexity


A report by the National Audit Office (NAO) indicates that ongoing changes to the UK tax system have increased administrative costs by £563 million between 2019-20 and 2023-24. These costs are expected to rise by an additional £875 million due to future changes planned between 2022 and 2024. The complexity of the tax system has also led to increased compliance costs for businesses, estimated at £15.4 billion annually. The NAO recommends that HMRC simplify processes to reduce the financial burden on taxpayers. 

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