HMRC releases information regarding businesses with HMRC debt

HMRC releases information regarding businesses with HMRC debt

Reports from HMRC suggest that companies are struggling to pay tax bills on time with arrears to HMRC running at an average of £28bn per month, with official figures, which have been obtained from HMRC under the Freedom of Information, revealing the scale of unpaid debts owed by businesses and currently being pursued by the tax authority across just Q1 of 2025, with corporation tax alone averaging debts of £7bn per month, and late PAYE payments, which include National Insurance contributions (NICs) averaged £8bn per month.

This figure is likely to continue to rise as hikes in employer NICs bite into business budgets following the 1.2% increase to 15% from April, coupled with the reduction in the threshold to £5,000, which saw over a million low paid workers paying employer NI liability for the first time.

One survey has revealed that in response to the economic outlook at present, it is thought that it is likely that companies are stockpiling their reserves and putting off paying tax liabilities in an effort to preserve cashflows.

HMRC has advised that late payments, especially those to organisations like HMRC, have an impact on the supply chain and wider public services.