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HMRC faces £43.8billion tax debt crisis as millions struggle to pay bills
The watchdog said older debts are harder to recover as HMRC estimates 46% of the outstanding balance may never be paid.
- At the end of 2025-26, 8.2 million taxpayers owed HM Revenue and Customs £43.8 billion, representing 4.7% of total tax receipts, according to the National Audit Office .
- Debt older than one year without payment plans rose from £5.3 billion before the Covid pandemic to £18.6 billion, as cost-of-living pressures hampered taxpayer ability to pay.
- More than half of total tax debt was over a year old, with HMRC estimating that 46% of the outstanding balance may never be paid.
- Gareth Davies, head of the NAO, said HMRC made progress but "needs to continue its efforts to get more productivity out of its staff and systems."
- New measures generated £10.7 billion in additional revenue, and the NAO reports upcoming Budget announcements may include expanded powers for HMRC to recover smaller debts directly from taxpayer bank accounts.
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Telegraph & Argus+8 Reposted by 8 other sources
HMRC faces £43.8billion tax debt crisis as millions struggle to pay bills
HMRC was owed £43.8billion by 8.2 million taxpayers at the end of 2025-26, with a watchdog warning that older unpaid tax debts are harder to recover.
·Bradford, United Kingdom
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Coverage Details
Total News Sources13
Leaning Left2Leaning Right0Center10Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
L 17%
C 83%
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