Measure
The government is investing a further £47.2 million to improve HMRC’s capability to manage tax debts. This is intended to allow HMRC to better distinguish between taxpayers who can afford to settle their tax debts but choose not to, from those who are temporarily unable to pay, ensuring taxpayers are offered the right support. It will support taxpayers who are temporarily unable to pay by enhancing the online Self-Serve Time To Pay service, while also providing HMRC with additional capacity to ensure that those who can afford to settle their debts do so.
Those taxpayers who are struggling to pay tax debts will be offered additional support as appropriate. HMRC are seeking to better identify those taxpayers who face genuine hardship as opposed to those choosing not to pay.
The above-mentioned investment will be spread over five years.
It is welcome that HMRC continue to support taxpayers who face temporary hardship to settle tax debts. This is in line with HMRC’s charter of working alongside customers to ensure the correct tax is paid.