Outstanding tax debt owed to HMRC rose to £44.7bn at the end of March 2026, underlining the continuing challenge facing the tax authority as new liabilities outpaced debt recovery.

New figures published by HMRC show the stock of overdue tax increased from £44bn a year earlier, despite a rise in the amount of debt resolved during the period.

The value of new tax debt reached £103.6bn in the year to the end of March, up from £96.9bn in the previous 12 months. Over the same period, HMRC recovered or resolved £101.9bn of debt, compared with £96.7bn a year earlier.

Because new debt continued to exceed the amount collected, the overall level of outstanding tax liabilities increased.

The number of taxpayers using HMRC's Time to Pay arrangements fell slightly during the year, from 913,209 to 884,319. The scheme allows individuals and businesses facing financial difficulty to spread tax payments over an agreed period.

The figures come as HMRC explores measures aimed at improving tax collection and reducing the level of outstanding debt. The department is currently consulting on proposals that would bring forward the timing of some tax payments, as well as seeking new powers to recover money directly from taxpayers' bank accounts on a regular basis.

The issue is also attracting greater parliamentary scrutiny. The National Audit Office is due to publish a review of HMRC's management of tax debt later this year, while the Public Accounts Committee has launched an inquiry into the department's efforts to reduce the outstanding balance.

Dawn Register, tax dispute resolution partner at BDO, said the latest figures showed tax debt remained "stubbornly high". She said that because the value of new debt continued to exceed the amount being cleared, the overall stock of debt was continuing to grow. Against a backdrop of pressure on the public finances, she added, HMRC's consultation on earlier tax collection and additional debt recovery powers reflected the increasing focus on improving tax receipts.