Can you go to jail for not paying taxes in the UK? (2026/27 Guide)

To answer the core question—can you go to jail for not paying taxes—the UK legal system unequivocally says yes. However, HM Revenue & Customs (HMRC) distinguishes sharply between a taxpayer who simply cannot pay a civil debt and a taxpayer who actively commits tax fraud.

Depending on the taxpayer’s conduct, HMRC can pursue civil committal for wilful refusal to pay, or criminal prosecution for fraudulent evasion. Furthermore, recent legislative changes have drastically escalated the prison sentences for statutory tax fraud.

Below is an exhaustive breakdown of the civil and criminal mechanisms that can lead to imprisonment for tax-related offences in the 2026/27 tax year.

Civil Debt Committal: Imprisonment for “Wilful Neglect”

You do not need to commit outright fraud to face imprisonment. If a taxpayer simply refuses to pay an established tax debt, HMRC can use civil enforcement routes to compel payment through the courts.

Under Section 5 of the Debtors Act 1869, a county court can issue a “judgment summons”.  This mechanism applies when a taxpayer or National Insurance debtor has the financial means to pay the debt but “wilfully neglects” or refuses to do so.

If the court determines the taxpayer is deliberately withholding payment despite having the means to settle the liability, the court holds the power to commit the debtor to prison for a term of up to six weeks.  This is a civil committal designed to force payment, rather than a criminal prosecution.  If the debtor serves the full term of imprisonment, the debt is not necessarily extinguished, though HMRC may concessionally reduce the judgment debt by the amount listed on the committal order.

Statutory Criminal Offences: Fraudulent Evasion

If a taxpayer deliberately falsifies records, under-declares income, or over-claims deductions, they cross the line into criminal tax evasion. HMRC prosecutes these actions under specific statutory provisions depending on the tax involved:

• Income Tax: Prosecuted under section 106A of the Taxes Management Act 1970 (TMA 1970).
• VAT: Prosecuted under section 72(1) of the Value Added Tax Act 1994 (VATA 1994), which makes it a criminal offence for any person to be knowingly concerned in the fraudulent evasion of VAT.
• Stamp Duty Land Tax (SDLT): Prosecuted under section 95 of the Finance Act 2003.

“If any person is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of VAT by him or any other person, he shall be liable… on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 14 years or to both.”

Finance Act 2024 Sentence Increases

Historically, the maximum prison term for these statutory tax frauds was 7 years. However, section 32 of the Finance Act 2024 deliberately doubled this threshold to penalise egregious tax behaviour.  For individuals convicted on indictment of serious tax fraud (including VAT, Income Tax, and SDLT), the maximum prison sentence is now 14 years.

Common Law: Cheating the Public Revenue

For the most complex and serious tax frauds, HMRC often bypasses statutory offences entirely and prosecutes under the common law offence of “Cheating the Public Revenue”.

Unlike the statutory offences under the TMA 1970 or VATA 1994, this common law offence has no statutory maximum sentence.  This means a judge can theoretically impose up to a life sentence. HMRC frequently utilises this charge for highly orchestrated, multi-million-pound evasion schemes where the 14-year statutory limit is deemed insufficient for the scale of the criminality.

2026/27 Specifics: New Vaping Duty Offences

The government continues to introduce new criminal tax offences to cover emerging markets. The Finance Act 2026 established strict criminal liabilities surrounding the new vaping duty.

Under section 130 of the Finance Act 2026, it is a criminal offence to possess, transport, display, sell, or otherwise deal in an unstamped vaping product.  If an individual commits an offence under these vaping duty provisions, section 132 dictates that they are liable on conviction on indictment to a term of imprisonment not exceeding 2 years, an unlimited fine, or both.

Summary Table: Imprisonment for Tax Offences

Next steps for research: Review HMRC’s internal guidance on the criteria used to select cases for criminal prosecution versus civil investigation under Code of Practice 9 (COP9), and assess the specific threshold requirements needed to trigger a judgment summons in the county court.