HMRC will take on 1,300 staff as part of government plans to expand the tax authority’s collections and compliance teams, Credit Strategy has learned.
This investment is forecast to bring in £4.4bn of additional tax revenue up to 2024/25 by enabling HMRC to further reduce the tax gap through additional compliance activity and expanding debt collection capabilities.
According to government projections, it will bring in an extra £55m this year, £280m next year, £855m in 2021/22, £1.06bn in 2022/23, £1.07bn in 2023/24 and £595m in 2024/25.
The government is investing an additional £63m in HMRC in 2020/21 to raise additional tax revenue and collect more tax debts.
The Investment is to ensure HMRC can continue to collect debts, while upgrading its IT systems to keep pace with transformation in the department.
It follows an additional £12.5m given to HMRC in the budget to begin work "immediately" on implementing breathing space.
Breathing space is set to be introduced from 2021 and will provide those in problem debt 60 days’ protection from enforcement action by their creditors and the charging of further interest and fees on their debts, including debts owed to central and local government.