The number of tax tribunal cases waiting to be heard has increased by 783% over the past year, from 1,200 at the end of June 2021 to over 10,000 at the end of June 2022.

In addition, the number of cases held in the first tier tax tribunal has increased 84% over the previous year to 46,000. This is the second highest number of cases seen in any quarter since 2009.

This upward trend is likely to continue as the Treasury and HMRC increase action against umbrella companies using potentially fraudulent VAT schemes and clamp down on tax avoidance.

The backlog in tax tribunal cases has largely risen due to the number of cases being brought against umbrella companies, says law firm Pinsent Masons.