Corporate report

Outputs for April 2018 to March 2019

Updated 12 September 2024

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 9%, and from 61% to 32% for hand-rolling tobacco per the current tax gap figures to March 2018. In the same period the revenue lost has reduced from £3.4 billion to £1.8 billion per year.

HMRC estimates the size of the illicit market using tax gap data which is reported annually, each autumn.

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.

Tobacco strategy outputs delivered

Cigarette Seizures

April 2018 to March 2019

HMRC Overseas Border Force HMRC Inland Totals
Volume (sticks) 627.2 million 628 million 83.8 million 1.33 billion
Revenue value (£) 225.2 million 225.5 million 30 million 480.7 million

Case studies

The ringleader of a smuggling gang caught with more than 9 million illegal cigarettes and £356,185 in cash has been jailed for 38 months.

A lorry driver, who was caught smuggling almost 10 million illegal cigarettes disguised as frozen chickens, has been jailed for 4 years.

Hand-rolling tobacco seizures

April 2018 to March 2019

HMRC Overseas Border Force HMRC Inland Totals
Volume (tonnes) 0.35 124.3 21.5 146.1
Revenue value (£) 100,000 35.9 million 6.2 million 42.2 million

Case studies

A jobless Londoner who enjoyed a sociable lifestyle of golf and exotic holidays by dodging tax on smuggled tobacco has been jailed for 46 months.

A haulage company boss who was caught smuggling 2,000kg of hand-rolling tobacco into the UK, evading £442,360 in duty, has been jailed for 18 months after an investigation by HMRC.

Criminal investigations

April 2018 to March 2019

April 2018 to March 2019
Arrests 140
Positive Charging Decisions 330
Convictions 278

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 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

April 2018 to March 2019
Number of assessments for tobacco products duty issued 1403
Value of tobacco products duty assessments issued £36,556,933

Wrongdoing penalties

April 2018 to March 2019
Number of excise wrong doing penalties issued 1315
Value of excise wrong doing penalties issued £7,892,795

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

A fraudster who was jailed for selling illegal cigarettes from his Wolverhampton shop has been told to pay back £61,000 or face another year behind bars on top of his original sentence of 26 months.

A Co Armagh woman, who stored almost one million illegal cigarettes in an outbuilding next to her home, has been sentenced to 2 years imprisonment, suspended for 3 years after an investigation by HMRC.

Help HMRC tackle tobacco smuggling

To report any kind of excise fraud or tax evasion you can contact HMRC with the information, in confidence.