UK households and businesses have been put on notice as HM Revenue and Customs (HMRC) declares a renewed and aggressive push to recover billions of pounds in unpaid taxes. The tax authority has confirmed it will 'actively pursue' a significant number of individuals and companies who are liable for tax but have not yet been chased for payment.
Parliamentary Warning Spurs Action
The warning emerged in the House of Commons following an inquiry from Conservative MP for Isle of Wight East, Joe Robertson. He pressed the government to reveal what assessment HMRC had made of those who owe tax but are not currently being pursued.
Responding for the Labour government, Dan Tomlinson, the MP for Chipping Barnet, delivered a stark message. He stated HMRC is committed to closing the tax gap and tackling a range of non-compliant behaviours. These include tax evasion, tax avoidance, criminal attacks, and simple non-payment.
Billions at Stake: The Scale of Compliance
The figures revealed in the Commons highlight the enormous sums involved in HMRC's compliance efforts. In the 2024 to 2025 tax year, HMRC's work contributed to record total tax revenues of £875.9 billion. Crucially, its interventions secured £48 billion in tax that would otherwise have gone unpaid, a significant rise from £41.8 billion the previous year.
Furthermore, the government has announced a series of budgetary measures designed to tighten the net further. A package from the Autumn Budget 2025 is projected to raise an additional £2.4 billion by 2029-2030. This builds on earlier announcements, bringing the total expected revenue from closing the tax gap during this Parliament to £10 billion by the end of the decade.
How HMRC Will Pursue Unpaid Debts
HMRC has outlined a clear and escalating process for recovering unpaid tax liabilities. The initial phase involves telephone and letter campaigns aimed at encouraging swift voluntary payment.
For those who do not respond, HMRC will escalate its efforts by employing private sector debt collection agencies to chase outstanding amounts. Cases will move systematically through these stages as part of the standard debt collection workflow.
For the minority who deliberately refuse to pay or engage, HMRC has a powerful arsenal of enforcement powers. These severe measures can include:
- Taking control of goods (seizing assets to sell at auction).
- Recovering debt through county court proceedings.
- Applying to make a company or individual insolvent.
HMRC notes that it records debt cases by tax type rather than by customer, and does not specifically organise cases by the stage of the collection process they are in. The authority also publishes its Annual Report and Accounts, detailing tax losses and the limited circumstances where a debt may be written off.
The message from Westminster is unequivocal: the era of leniency is over, and HMRC is now mobilising its full resources to ensure every owed pound is collected.
