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Delinquent tax balloons to £38bn as HMRC walks ‘fine line’ to avoid mass insolvencies

Delinquent tax balloons to £38bn as HMRC walks ‘fine line’ to avoid mass insolvencies

Unpaid tax has ballooned by 10 per cent to almost £38bn in the last three months of the year, but HMRC is concerned about triggering a wave of insolvencies.

by Shared from City A.M. | 16 Nov, 2022

HMRC denied claims it is ramping up its debt collection, as it comes under increasing pressure to chase up delinquent payers in a time of economic hardship.

New figures highlighted by Pinsent Masons show there has been a steep rise, after HMRC appeared to stop most debt-collection in the heat of the pandemic.

In addition to the level of unpaid debt rising from £34.3bn to £37.8bn, there is a further £9.1bn owed through agreements like ‘Time to Pay’.

According to Pinsent Masons the overdue cash is now subject immediate debt collection procedures, despite inflation skyrocketing and interest rates being raised recently, making repayment on borrowing even harder.

Delinquent tax balloons to £38bn as HMRC walks ‘fine line’ to avoid mass insolvencies

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