The annual wage bill for Her Majesty's Revenue & Customs (HMRC) has seen an increase of £29.4 million compared to last year, due to an increase in the number of senior level staff, according to new research from the Global Payroll Alliance (GPA).
The analysis shows HMRC's core workforce grew by 3.6 per cent between August 2024 and August 2025, with full-time equivalent posts rising from 64,580 to 66,880. While most of the expansion was at mid-level grades, the most significant cost impact came from increases among higher-paid employees.
The GPA report found that the executive officer role – one of the more junior ranks in the civil service pay structure – grew 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 level in the civil service – increased by 4.6 per cent, while Senior Civil Service (SCS) posts increased by 3.8 per cent year-on-year.
These senior appointments have had a disproportionate impact on overall payroll costs. HMRC's wage bill rose from £287.1 million in August 2024 to £316.6 million a year later, representing an increase of 10.3 per cent.
Commenting on the findings, Melanie Pizzi, CEO and Founder of the Global Payroll Alliance, said the data raised important questions about whether the increase in agency headcount reflects strategic need or inefficiency.
“The £29.4 million increase in HMRC's wage bill in just one year is significant, particularly when the majority of that increase is due to growth in senior roles,” he said.
“While investment in people may be essential – particularly for an organization ensuring effective tax collection – it is important to ask whether this increase reflects a genuine strategic need or an over-reliance on increasing headcount.”
Pizzi said technology can play a big role in reducing costs and streamlining processes.
“At a time when all government departments are under pressure to deliver more with limited resources, it is worth raising the question 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 could improve oversight and compliance, it also underlined the importance of transparency and measurable results in the use of public funds.
“If these roles are helping to reduce the tax gap and improve compliance, there may be a case for them,” Pizzi said. “But accountability and clear results will be critical to justifying this level of payroll growth.”
HMRC has not yet commented publicly on the findings.
jamie young
Jamie is a senior reporter at Business Matters, with over a decade of experience in UK SME business reporting. Jamie has a degree in Business Administration and regularly attends industry conferences and workshops. When Jamie is not reporting on the latest business developments, he is passionate about mentoring budding journalists and entrepreneurs to inspire the next generation of business leaders.
