3rd Report - HMRC Customer Service and Accounts

Select Committee
Public Accounts Committee HC 347 22 January 2025
Report Status Government responded
Conclusions & Recommendations 22 items (10 recs)
Source View on Parliament website
Government Response (AI assessment · 22 of 22 classified)
Accepted 12
Acknowledged 4
Deferred 3
Rejected 3
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Third report from Session 2024-25 · published 6 May 2025
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Recommendations & Conclusions

3 results
16 Conclusion Deferred
HMRC's tax debt remains stubbornly high at £43 billion, significantly above pre-pandemic levels.
Conclusion
The amount of tax debt owed by taxpayers to HMRC fell only marginally in 2023–24, from £43.9 billion at 31 March 2023 to £43.0 billion at 31 March 2024 (5.1% of annual tax revenues). This compares with a debt balance … Read more
Government Response Summary
HMRC received more funding for debt collection and will have more staff in 2025-26. HMRC will respond in September 2025 with its expectations for the tax debt balance by 2029-30 and plans for older debts, following the Spending Review Phase 2.
HM Treasury
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17 Recommendation Deferred
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 … Read more
Government Response Summary
HMRC will respond in September 2025 with its expectations for the tax debt balance by 2029-30 and plans for older debts, allowing for the outcome of the Spending Review Phase 2 to be taken into consideration. They also mention increased staffing and efforts to reduce new debt.
HM Treasury
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18 Recommendation Deferred
Older HMRC debts are less likely to be repaid, requiring tailored interventions.
Recommendation
As HMRC’s debts get older, they are less likely to be repaid.52 HMRC stressed the importance of tackling the new debt before it ages.53 We asked whether HMRC has a new approach planned for tackling older debts.54 It said it … Read more
Government Response Summary
HMRC will respond in September 2025 with its expectations for the tax debt balance by 2029-30 and plans for older debts, allowing for the outcome of the Spending Review Phase 2 to be taken into consideration. They also mention increased staffing and efforts to reduce new debt.
HM Treasury
View Details