Politics · United Kingdom · 3 hrs ago
Older UK tax debts rise as HMRC faces tougher collections
The UK tax authority, HMRC, is facing a growing stock of old tax debts that are harder to collect.
At the end of 2025-26, 8.2 million taxpayers owed a total of £43.8 billion.
Debts more than a year old and outside payment plans reached £18.6 billion, compared with £5.3 billion before the pandemic.
Cost-of-living pressures can make it harder for some people to pay, while nearly half of new debts are settled within a month.
About 51% of all tax debt was more than a year old, and HMRC estimates that 46% of the total balance may not be paid.
Since 2021, HMRC says new measures to manage debt have brought in £10.7 billion in additional revenue, against £368 million in costs.
The watchdog recommends simpler digital payment plans and better-targeted action, while HMRC is expected to announce the outcome of consultations on direct debits and recovering smaller debts from bank accounts in the upcoming Budget.
HMRC is facing a growing problem of older tax debts that are harder to collect, according to a National Audit Office report.
Debt more than a year old and not covered by a payment plan rose from £5.3 billion before the pandemic to £18.6 billion at the end of 2025-26.
At that time, 8.2 million taxpayers owed HMRC a total of £43.8 billion.
The NAO said 46% of the tax debt balance may not be paid.
It urged HMRC to prevent avoidable debt, act quickly when debts arise and improve the productivity of its staff and systems.
- Who
- HM Revenue and Customs (HMRC) and taxpayers who owe it tax.
- What
- Older tax debts are rising and are harder to collect, according to a National Audit Office report.
- When
- At the end of 2025-26.
- Where
- The United Kingdom.
- Why
- Cost-of-living pressures make it harder for some taxpayers to pay. The report also says older debts are less likely to be recovered.
This story does not have two clearly opposing sides.
Debt more than a year old and not covered by a payment plan stood at £5.3 billion.
28% of tax debt was more than one year old.
HMRC introduced measures including recruiting more staff, increasing its use of private debt collection agencies and using data to tailor its approach.
Tax debt totalled £43.8 billion, with £18.6 billion more than a year old and not covered by a payment plan.
- Taxpayers in debt at end of 2025-26
- 8.2 million
- Total tax debt at end of 2025-26
- £43.8 billion
- Older debt not covered by a payment plan
- £18.6 billion at end of 2025-26; £5.3 billion before the pandemic
- Share of tax debt more than one year old
- 51% at end of 2025-26, up from 28% at end of 2019-20
- Estimated share of debt that may not be paid
- 46% at end of 2025-26
What people are saying
HMRC has made good progress on tax debt in the challenging circumstances of recent years, but faces an increasing problem of old debt which is harder to collect.
HMRC should now focus on preventing avoidable debt and acting quickly when debts arise.
Tax debts have been getting older on average and are therefore more difficult to collect, with HMRC estimating that 46% of the tax debt balance at the end of 2025-26 may not be paid.
We make it easy for those who can pay, support those who need help, and take firm action against those who choose not to engage with us about their tax debts.