The Chancellor has confirmed that HMRC is to receive another £47.2m to help with debt collection, says multinational law firm Pinsent Masons, which will bring in £1.2billion in extra tax
HMRC is currently owed £40.3 billion in unpaid tax that is so far in arrears that it is potentially subject to immediate debt collection processes (debt available for pursuit) that’s up from £37.8billion three months ago.
Says Abigail McGregor, Legal Director of Pinsent Masons: “Unpaid tax debts have reached a dramatic level.’
“This new investment is designed to enable HMRC to distinguish between taxpayers who can’t pay and those who won’t pay.”
“Those who can’t pay will be supported to enter time to pay arrangements, those who won’t pay will be more quickly pursued for the debt.”
“The new funding is a temporary boost to HMRC by increasing private sector capacity between now and March 2025, which will accelerate the recovery of the funds.”
“Previous forecasts had been longer term due to the difficulty of recruiting and training staff, whereas this measure is expected to see results even within this tax year.”
HM Treasury expect that this extra £47.2m additional investment in HMRC’s debt collection activity will bring in an extra £1.2billion in tax revenue over the next five years.