HMRC writes off £5.2 billion tax

Taxes totalling almost £5.2 billion were written off by HM Revenue and Customs (HMRC) last year, according to a report published by official auditors.

Meanwhile, HMRC's accounts for 2011/12 showed it overpaid between £2 billion and £2.5 billion in tax credits, and underpaid up to £290 million as a result of fraud and error, the report by the National Audit Office (NAO) said. A target of reducing the level of fraud and error to 5% of tax credit entitlements was missed.