£1.5bn Unpaid Tax Predicted To Be Written Off?

The BBC has revealed that £1.5bn tax would not be perused on cases dating back more than 2 years as they would be open to legal challenge from taxpayers. HMRC has a backlog of 7.5 million under and overpayment cases, of which £3bn relates to overpayment cases. The Government has made no decision on whether or not the more recent underpayment cases will be perused although it has said the £3bn owing to the overpayment cases will be returned.

A HMRC spokesman said “Those who have underpaid, they will be part of the overall decision-making process - no decision yet on what to do with them. But they are being identified.” It is expected that HMRC will tackle the issue of recovering underpaid taxes sympathetically, although anyone that feels they will be unable to cope with additional monthly expenditure should seek advice from a debt advice charity.

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