Outputs for April 2020 to March 2021
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-2020-to-march-2021
The government has had a comprehensive strategy to tackle illicit tobacco since 2000.
This has been highly effective in reducing the illicit market share from 21.7% in 2005 to 2006 to 16.6% in 2019 to 2020 for both cigarettes and hand-rolling tobacco. In the same period, the revenue lost has reduced from £2.7 billion to £2.3 billion.
HMRC estimates the size of the illicit market using tax gap data which is reported annually.
For more details, read about excise (including alcohol, tobacco and oils) in measuring tax gaps 2021 edition: tax gap estimates for 2019 to 2020.
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. The strategy 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.
This report sets out tobacco strategy outputs delivered for 2021 to 2022.
Cigarette seizures
These are the seizures for April 2020 to March 2021.
| HMRC Overseas | Border Force | HMRC Inland | Totals | |
|---|---|---|---|---|
| Volume (sticks) | 501.5 million | 514.3 million | 123.7 million | 1.14 billion |
| Revenue value (£) | 193.1 million | 198 million | 47.6 million | 438.7 million |
Case studies
‘Most wanted’ tax cheat jailed after investigators seized cigarettes worth £2.8 million.
HMRC officers uncovered 4 million illicit cigarettes in a Glasgow warehouse.
Hand-rolling tobacco seizures
These are the seizures for April 2020 to March 2021.
| HMRC Overseas | Border Force | HMRC Inland | Totals | |
|---|---|---|---|---|
| Volume (kilograms) | 26,250 | 99,434 | 23,909 | 149,593 |
| Revenue value (£) | 8.6 million | 32.6 million | 7.8 million | 49 million |
Case studies
A father and son were jailed for £1.6 million tobacco fraud.
Criminal investigations
| April 2020 to March 2021 | |
|---|---|
| Arrests | 61 |
| Positive charging decisions | 115 |
| Convictions | 43 |
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 case 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 improve compliance by:
- penalising anyone handling illicit tobacco products
- recovering unpaid duty on seizures made at the border and inland
Tobacco products duty assessments
| April 2020 to March 2021 | |
|---|---|
| Number of assessments for tobacco products duty issued | 629 |
| Value of tobacco products duty assessments issued | £47, 024,468 |
Wrongdoing penalties
| April 2020 to March 2021 | |
|---|---|
| Number of excise wrongdoing penalties issued | 578 |
| Value of excise wrongdoing penalties issued | £8,930,741 |
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
Runaway tobacco and VAT fraudster jailed for 6 years.
Fugitive cigarette smuggler behind bars after more than 2 years on the run.
Eight million cigarettes seized in cross border operation involving 3 arrests.
Help HMRC tackle tobacco smuggling
To report any kind of excise fraud or tax evasion you can contact HMRC with the information, in confidence.