His Majesty’s Revenue & Customs (HMRC) has seen its annual wage bill rise by £29.4 million over the past year, driven by an increase in senior-level employees, according to new research from the Global Payroll Alliance (GPA).
The analysis shows that HMRC’s core workforce grew by 3.6 per cent between August 2024 and August 2025, with full-time equivalent positions rising from 64,580 to 66,880. While much of the expansion was at mid-level grades, the most significant cost impact came from growth among higher-paid staff.
The GPA report found that Executive Officer roles — one of the more junior ranks in the Civil Service pay structure — rose by 4.8 per cent, reflecting ongoing recruitment to support frontline operations and compliance activity.
However, the number of Grade 6 and Grade 7 employees — the second-highest tier in the Civil Service — climbed by 4.6 per cent, while those in Senior Civil Service (SCS) positions increased by 3.8 per cent year on year.
These senior appointments have had a disproportionate impact on total payroll costs. HMRC’s pay bill rose from £287.1 million in August 2024 to £316.6 million a year later, representing a 10.3 per cent increase.
Commenting on the findings, Melanie Pizzey, CEO and Founder of the Global Payroll Alliance, said the figures raised important questions about whether the agency’s headcount growth reflects strategic necessity or inefficiency.
“An increase in HMRC’s wage bill of £29.4 million in just one year is significant, particularly when much of that rise is attributed to growth in senior roles,” she said.
“While investment in people can be essential — especially for an organisation tasked with ensuring effective tax collection — it’s important to ask whether this growth reflects a genuine strategic need or an over-reliance on expanding headcount.”
Pizzey added that technology could play a larger role in reducing costs and streamlining processes.
“At a time when all government departments are under pressure to deliver more with limited resources, it’s worth questioning whether HMRC is making the best use of automation to manage workloads and reduce staffing costs where possible,” she said.
The GPA noted that while expanding HMRC’s senior ranks may improve oversight and compliance, it also underscores the importance of transparency and measurable outcomes in the use of public funds.
“If these roles are helping to close the tax gap and improve compliance, there may well be a case for them,” Pizzey said. “But accountability and demonstrable results will be key to justifying this level of payroll growth.”
HMRC has not yet commented publicly on the findings.