The powers of HMRC's debt collection department

HMRC is adding 1,800 debt management staff (1,200 existing, 600 new), aiming to raise an extra £2bn a year by 2029/30.

Unpaid PAYE under £2,999.99 is usually collected via tax code changes; larger debts need direct payment. HMRC can also recover debts over £1,000 directly from bank accounts, leaving at least £5,000.

If unpaid, enforcement officers may issue a Controlled Goods Agreement (7 days to pay) or seize assets, charging £110 + 7.5% of debts over £1,500. HMRC can also secure debts with a property charging order or pursue directors for wrongful trading.

In 2023/24, HMRC collected 94.7% of tax due (£829.2bn of £876bn), leaving a £46.8bn gap.