Extra Resources for HMRC
Debt owed to HMRC has trebled
HMRC are facing a dilemma with regards to the unprecedented amount of debt owed to them by UK businesses, an amount that has trebled from 2019 to £65.5bn. A considerable amount of this money, £26.6bn, is sufficiently in arrears to permit HMRC to take enforcement action.
There are also concerns around fraudulent claims for coronavirus support with £35bn of the outstanding amount owed made up of emergency coronavirus support policies.
HMRC itself has been given extra money and resources to pursue overdue loans. It has extra powers as it is now classed as a preferential creditor in any insolvency since December 2020.
Nevertheless, HMRC must strike a balance of taxpayers’ interests, recovering money and risking insolvencies in the longer term.
