Tax debt rises by nearly a quarter during credit crunch

The number of people and businesses with tax debt has risen by 22% in a year, according to estimates by the National Audit Office (NAO). In its report, the NAO found that 1.5 million working adults had an outstanding bill in April this year, equating to an increase of 22% from the same month in 2007. Pay As You Earn (PAYE) accounted for nearly a third of the debt. Self-assessment income tax debts accounted for 21%. The report warns that HM Revenue & Customs (HMRC) could encounter problems when trying to recover the debt as it has cut staff levels by 14% since 2006.

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View the report at:
http://www.nao.org.uk