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The government has announced investment of a further £163m to improve HMRC’s management of tax debts.
This funding is intended to enhance HMRC’s ability to distinguish between those who can afford to settle their tax debts but choose not to, and those who are unable to do so and require additional support.
Individuals and businesses who may have difficulty paying their tax liabilities at the required time, or choose not to do so.
This will depend on HMRC’s ability to recruit additional staff and acquire new resources.
This is a welcome announcement as some taxpayers have struggled to obtain tailored support from HMRC’s debt management function during times of hardship. It is hoped that additional resources will enable HMRC to better ensure that those who are able to pay their tax liabilities do so, and those who are not are provided with support where appropriate.