Does the Statute of Limitations Act apply to HMRC debts? The client has owed them money and not been chased since an original demand in 2006
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Yes & No
It depends on what HMRC are chasing. See here
http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm595080.htm
In a nutshell it says tax is not time barred but NI is.