Outputs for April 2016 to March 2018
Updated 15 December 2023
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This publication is available at https://www.gov.uk/government/publications/annual-outputs-for-tacking-tobacco-smuggling/outputs-for-april-2016-to-march-2018
The government has had a comprehensive strategy to tackle illicit tobacco since 2000.
This has been highly effective in reducing the illicit cigarette trade from 22% (in 2000 to 2001) to 15% today, and from 61% to 28% for hand-rolling tobacco. In the same period the revenue lost has reduced from £3.4 billion to £2.5 billion per year.
Recognising that this remains a significant problem, to build on this success HMRC and UK Border Force published a refreshed strategy for tackling tobacco smuggling in March 2015. This explains how we will continue to catch, and punish those in the illicit tobacco trade.
For more details, read Tackling illicit tobacco: from leaf to light.
HMRC estimates the size of the illicit market using tax gap data which is reported annually, each autumn. Read the latest report: Tobacco tax gap estimates 2016 to 2017.
Tobacco strategy outputs delivered
Cigarette seizures
April 2016 to March 2017
| HMRC Overseas | Border Force | HMRC Inland | Totals | |
|---|---|---|---|---|
| Volume (sticks) | 933.7 million | 376 million | 46.5 million | 1.35 billion |
| Revenue value | £308.1 million | £124 million | £15.3 million | £447.4 million |
April 2017 to March 2018
| HMRC Overseas | Border Force | HMRC Inland | Totals | |
|---|---|---|---|---|
| Volume (sticks) | 912.6 million | 471 million | 105.6 million | 1.48 billion |
| Revenue value | £318.4 million | £164.3 million | £36.8 million | £ 519.5 million |
Case studies
A lorry driver who was caught smuggling millions of cigarettes into the UK, was jailed for 14 months in March 2018 after an investigation by HMRC.
Gang in a spin after washing machine scam — a group of London based fraudsters caught smuggling cigarettes in a lorry load of washing machines has been jailed for a total of more than 11 years.
Hand-rolling tobacco seizures
April 2016 to March 2017
| HMRC Overseas | Border Force | HMRC Inland | Totals | |
|---|---|---|---|---|
| Volume (tonnes) | 1.4 | 300.6 | 42.9 | 345 |
| Revenue value | £370,000 | £77.8 million | £11.1 million | £89.3 million |
April 2017 to March 2018
| HMRC Overseas | Border Force | HMRC Inland | Totals | |
|---|---|---|---|---|
| Volume (tonnes) | 0.35 | 268.5 | 24.3 | 293.2 |
| Revenue value | £90,000 | £73.8 million | £6.6 million | £80.6 million |
Case studies
Three men were jailed in May 2017 for a total of 16 years after a £17 million tax fraud involving an illegal tobacco factory was discovered.
Seasoned tobacco smuggler returns to prison — a convicted tobacco smuggler, who had been warned that being caught again with illicit tobacco would mean his return to prison, has been jailed for 10 years.
Criminal investigations
| April 2016 to March 2017 | April 2017 to March 2018 | |
|---|---|---|
| Arrests | 276 | 192 |
| Positive Charging Decisions | 445 | 298 |
| Convictions | 318 | 263 |
During the life of a prosecution case a decision is made as to whether to charge a suspect or not.
Convictions do not necessarily relate to the prosecutions started in this period, since outcomes to cases will depend on the time taken for them to be processed through the judicial system.
Civil penalties
In addition to criminal prosecutions, HMRC uses a range of sanctions and penalties to penalise anyone handling illicit tobacco products, to recover unpaid duty on seizures made at the border and inland to improve compliance.
Tobacco products duty assessments
| 2016 to 2017 | 2017 to 2018 | |
|---|---|---|
| Number of assessments for tobacco products duty issued | 1526 | 1606 |
| Value of tobacco products duty assessments issued | £31.9 million | £27.4 million |
Wrongdoing penalties
| 2016 to 2017 | 2017 to 2018 | |
|---|---|---|
| Number of excise wrong doing Penalties issued | 1827 | 1616 |
| Value of excise wrong doing Penalties issued | £13.4 million | £12.2 million |
HMRC multi-agency events
HMRC maintains a good working relationship with a variety of partner agencies to combat the illicit tobacco trade. These include local authority trading standards teams, the police and other government departments.
Case studies
With the assistance of Trading Standards and the Police we have tackled the illicit trade operating out of shops, issuing tax bills and penalties for more than £11 million in the year ending 2017. HMRC has also worked with council Trading Standards, police, and British Gas.
An inter-agency operation also led to the dismantling of a suspected illicit cigarette-processing factory, the seizure of 4 lorry loads of processed and raw tobacco, cigarettes and packaging materials and the arrest of 10 men in November 2016.
HMRC worked with partner agencies to arrest 8 men and search 11 premises in February 2016 during a multi-agency operation in Manchester which led to the seizure of 137,600 cigarettes, 73kg of tobacco, counterfeit cash, and 4 vehicles.
Help HMRC tackle tobacco smuggling
To report any kind of excise fraud or tax evasion you can contact HMRC with the information, in confidence.