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Select Committee · Public Accounts Committee

HMRC Customer Service and Accounts 2023-24

Status: Closed Opened: 31 Oct 2024 Closed: 3 Apr 2025 10 recommendations 12 conclusions 1 report

HMRC reported the highest tax revenues on record in 2023-24, reflecting the freezing of income tax bands and thresholds, and an increase in the rate of Corporation Tax from 19% to 25%. Tax debt has now fallen marginally, but remains significantly higher than before the pandemic - £43bn in March 2024, down 1.9% since 2023, …

Clear

Reports

1 report
Title HC No. Published Items Response
3rd Report - HMRC Customer Service and Accounts HC 347 22 Jan 2025 22 Responded

Recommendations & Conclusions

3 items
16 Conclusion 3rd Report - HMRC Customer Service and… Deferred

HMRC's tax debt remains stubbornly high at £43 billion, significantly above pre-pandemic levels.

The amount of tax debt owed by taxpayers to HMRC fell only marginally in 2023–24, from £43.9 billion at 31 March 2023 to £43.0 billion at 31 March 2024 (5.1% of annual tax revenues). This compares with a debt balance of typically £15 billion in the five years before the …

Government response. HMRC received more funding for debt collection and will have more staff in 2025-26. HMRC will respond in September 2025 with its expectations for the tax debt balance by 2029-30 and plans for older debts, following the Spending Review Phase …
HM Treasury
17 Recommendation 3rd Report - HMRC Customer Service and… Deferred

High levels of new tax debt continue, prompting HMRC to secure funding for more staff.

HMRC said it is still seeing very high levels of new debt coming into the system, largely as a result of cash-flow issues in small businesses.49 In the Autumn Budget 2024 it received funding for a further 1,800 debt management staff. This follows an additional £303 million in 2023–24 and …

Government response. HMRC will respond in September 2025 with its expectations for the tax debt balance by 2029-30 and plans for older debts, allowing for the outcome of the Spending Review Phase 2 to be taken into consideration. They also mention increased …
HM Treasury
18 Recommendation 3rd Report - HMRC Customer Service and… Deferred

Older HMRC debts are less likely to be repaid, requiring tailored interventions.

As HMRC’s debts get older, they are less likely to be repaid.52 HMRC stressed the importance of tackling the new debt before it ages.53 We asked whether HMRC has a new approach planned for tackling older debts.54 It said it 47 Report on 2023–24 Accounts, para 7 48 Qq 37-38 …

Government response. HMRC will respond in September 2025 with its expectations for the tax debt balance by 2029-30 and plans for older debts, allowing for the outcome of the Spending Review Phase 2 to be taken into consideration. They also mention increased …
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
28 Nov 2024 Justin Holliday · HMRC, Myrtle Lloyd · HMRC, Sir Jim Harra · HMRC View ↗

Correspondence

4 letters
DateDirectionTitle
4 Sep 2025 To cttee Letter from the Chief Executive and First Permanent Secretary of HM Revenue and…
6 Feb 2025 From cttee Letter to the Chief Executive and First Permanent Secretary of HM Revenue and C…
22 Jan 2025 From cttee Letter to the Permanent Secretary of HM Revenue and Customs relating to Third R…
22 Jan 2025 To cttee Letter from the Permanent Secretary of HM Revenue and Customs relating to Third…