HMRC expands surveillance team as Rayner stamp duty scandal unfolds

HMRC has significantly expanded its surveillance capabilities, training 337 staff to physically monitor suspected tax evaders, according to newly released official figures.

The development follows the resignation of Deputy Prime Minister Angela Rayner, who stepped down after being accused of underpaying £40,000 in stamp duty on the purchase of her £800,000 Hove flat.

Under HMRC guidelines, surveillance powers allow staff to carry out physical monitoring of individuals and businesses suspected of tax fraud. These activities include conducting ‘drive-bys’ of premises, monitoring property activity, and running test purchases of goods or services to gather evidence.

In the most recent financial year, training the new surveillance team of 337 staff cost £580,403 — a sharp rise compared with the 171 staff trained two years earlier.

In addition, 196 employees received criminal foundation training at a cost of £316,816, while 2,179 HMRC staff underwent public and personal safety training. A further 168 staff were equipped with courtroom skills training to support legal proceedings.

Kenny MacAulay, CEO of Acting Office, a software platform for accounting practices, said: “The resignation of the deputy prime minister underlines the complexity of Britain’s tax law and the serious consequences of getting it wrong. It’s encouraging to see HMRC ramp up its core capabilities to identify and enforce the rule and hold individuals and businesses to account.

“For accounting practices, the deluge of new regulations, requirements and protocols means that one bad decision could lead to severe reputational damage and loss of customer trust. That’s why implementing the latest AI and digital technology to modernise systems should be at the very top of the agenda.”

Dr Janet Bastiman, chief data scientist at Napier AI, added: “With financial crime and money laundering on the rise, ramping up tailored training to enable HMRC staff to identify fraudsters and tax evaders is necessary investment. It’s also crucial to make use of the latest AI and digital technology to flag suspicious transactions and enable agents to take action and hold those responsible to account.”