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Nearly HALF of the £43.8bn owed to HMRC may never be collected as debts over a year old soar

Nearly HALF of the £43.8bn owed to HMRC may never be collected as debts over a year old soar

Some 8.2 million taxpayers were in hock to the taxman at the end of 2025-26, the National Audit Office has found. Unpaid bills over a year old with no payment plan ballooned from £5.3bn before Covid to £18.6bn. The spending watchdog warned that HMRC is struggling with a growing number of debtors who simply ignore it. Before the pandemic, the total owed hovered around £15bn.

Over half of all tax debt is now more than a year old, against 28% in 2019-20.

New tax debts hit £103.6bn last year, roughly double the pre-pandemic annual average.

HMRC claims its debt crackdown raised £10.7bn after spending £368m.

MoreThe IndependentHMRC dealing with older tax debts which are harder to collect – report - The IndependentCredit ConnectHMRC making progress on tackling tax debt - Credit ConnectHackney GazetteHMRC faces £43.8billion tax debt crisis as millions struggleNational Audit Office (NAO)HMRC’s management of tax debt - National Audit Office (NAO)The TimesHMRC to deduct money directly from bank accounts of tax evadersLBCHMRC dealing with older tax debts which are harder to collect – reportDaily RecordHMRC issues updated warning over unpaid tax bills and 14-day deadlineThe HeraldExpert warns HMRC can now raid bank accounts for unpaid tax money without permission
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