HMRC signs deal to modernise its data systems to help tackle evasion and fraud

Newsletter issue – November 2026

HMRC has signed a £175 million, 10-year agreement with Quantexa, a London-based technology company in what is described as one of the largest public-sector technology deployments.

HMRC wants to replace its fragmented legacy data systems, which currently make it harder to identify tax evasion, fraud, and unpaid taxes. Tax evasion is estimated at £5.5bn with a further £47bn in taxes going unpaid last year.

Quantexa will create a unified data foundation that brings together information from different sources, helping HMRC identify complex networks involving shell companies, directors, VAT fraud, and payroll fraud. This deal aligns with the Treasury's effort to "Close the Tax Gap" and reflects a move towards using domestic technology to strengthen national infrastructure and combat increasingly sophisticated fraud. The government's view is that better-connected, higher-quality data will enable both more effective enforcement and future AI-driven tax compliance tools.