Revealed - UK's biggest deliberate tax defaulters
Newsletter issue – September 2025
HMRC has named over 4,000 deliberate tax defaulters since 2015, collectively owing more than £1.5 billion. These individuals or firms were penalised for deliberate errors in tax returns or failing to meet tax obligations. Here is the sector breakdown:
Hospitality: 21% of defaulters (e.g. takeaways, pubs, cafes).
Construction & Trades: 19% (e.g. plumbing, plastering).
Recruitment/Payroll firms: 5 of the top 10 defaulters, owing £145 million.
Haulage & Freight: 112 defaulters owing £33.5 million.
Metals & Recycling: Notably concentrated in Yorkshire, with £60.4 million owed.
Other sectors include adult entertainment (£783k) and barristers (£523k).
The campaign aims to deter tax evasion and increase transparency. HMRC publishes names only after penalties are final. Defaulters can avoid being listed if they fully disclose their defaults. HMRC also stated that the list only includes those penalised under civil procedures and does not include criminal convictions for tax fraud.
The think-tank TaxWatch warns that the £1.5bn figure may be just the 'tip of the iceberg', especially with offshore income potentially escaping HMRC's radar. They added that 'HMRC has the power to fine and name tax advisers who deliberately conceal documents or provide misleading information about their clients' affairs. Yet between 2020 and 2024 we found that HMRC started substantive investigations against fewer than five dishonest tax advisers in each year, and at the moment it doesn't publish the names of any tax advisers fined for dishonesty."
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