Background to the report
HM Revenue & Customs (HMRC) administers the UK’s tax system. In 2025-26, HMRC collected £938.8 billion in tax, which can then be used by the government to fund public services. When taxpayers fail to make their scheduled payments for their tax liabilities, the overdue amounts are recorded as tax debts. At the end of 2025‑26, 8.2 million taxpayers were in debt to HMRC, with their tax debts totalling £43.8 billion, or 4.7% of total tax receipts. HMRC’s debt management directorate leads its work to follow up and collect these debts, employing approximately 5,600 full-time equivalent staff in 2025-26, with staffing costs of £237 million.
Since our 2021 report, HMRC has been…