Source · Select Committees · Public Accounts Committee
Recommendation 17
17
High levels of new tax debt continue, prompting HMRC to secure funding for more staff.
Recommendation
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 £47.2 million in 2022–23 to improve its capacity to manage tax debts.50 HMRC said it will target the additional staff at these new debts, with staff mainly on HMRC’s debt helpline and a small amount on enforcement activities.51
Government Response
A response document is linked to this report, dated 6 May 2025. Response attribution to this conclusion has not been verified. Read the response document ↗