New funding for HMRC to aid clampdown against tax debtors

A new £163m investment in HMRC’s debt management team announced by the chancellor at the Autumn Statement will help the tax authority to recoup an additional £4.67bn in unpaid tax over the next six years according to Treasury estimates.

The Green Book (see page 84) forecasts that the additional investment in HMRC’s debt management capability will help the tax authority recover an extra £515m in 2024-25 before reaching over £1bn by 2025-26 onwards.

The investment is designed to enable HMRC to target its debt collection activity more efficiently against individuals and businesses pursuing those with tax debts that can afford to pay and providing support to those that are temporarily unable to pay.

The latest figures from HMRC show that the amount of tax owed to the exchequer but remaining unpaid was £45.5bn as at the end of September 2023. This comprises £7.8bn of managed...