HMRC wage bill grows by £29.4m
New research from The Global Payroll Alliance (GPA), reveals that HMRC has increased its core workforce by 3.6% in the past year with senior employees accounting for a significant proportion of this increase. As such, HMRC’s wage bill has increased by £29.4m.
The Global Payroll Alliance has analysed the changing number of full-time jobs at His Majesty’s Revenue & Customs (HMRC) between August 2024 and August 2025* and analysed the impact that this has had on the organisation’s overall annual pay bill.
The research shows that HMRC has increased its full-time equivalent positions by 3.6% in the past year, with the number of jobs rising from 64,580 in August 2024 to 66,880 in August 2025.
This headcount increase has been led by a 4.8% increase in employees at the executive officer level, which is the second-most junior band on the Civil Service’s Departmental Grade Structure.
However, notable increases were also seen at the senior end of the pay scale. Grade 6 and 7 positions – the second-most senior band – rose by 4.6%, while the number of staff in Senior Civil Service roles – the highest tier – grew by 3.8%.
Because of these increases in senior, high-paid roles, HMRC’s total payroll staff costs have increased dramatically over the past year. In August 2024, the total pay bill was £287.1m. A year later this has risen to £316.6m, an annual increase of £29.4m, or 10.3%.
Melanie Pizzey, CEO and founder of the Global Payroll Alliance, says: “An increase in HMRC’s wage bill of £29.4m in just one year is significant, particularly when much of that rise is attributed to growth in senior roles. 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 strategic need or an over-reliance on expanding headcount.
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 technology and automation to manage workloads and reduce staffing costs where possible.
That said, HMRC also has a vital role in maintaining the integrity of the tax system. If these roles are helping to close the tax gap and improve compliance, then there may well be a case for them, but transparency and measurable outcomes will be key to justifying this level of payroll growth.”
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