HMRC Brings In Debt Collectors

Debt collection agencies will be used by HM Revenue & Customs (HMRC) during 2010-11 to collect an additional £140m of tax debt.

HMRC will be working with Commercial Collection Services Ltd, Credit Solutions Ltd, Fairfax Solicitors Ltd and ivory Recovery Services Ltd on the project.

In the June 2010 Budget, it was announced that, following a successful pilot, HMRC would use debt collection agencies (DCAs) operating under industry and HMRC standards to boost HMRC’s debt collection capacity and help pursue lower value debts.

Nick Lodge, HMRC’s director of debt management and banking, said: “We do understand that some businesses and individuals are not in a position to pay what they owe and we have put procedures in place to help those who are genuinely struggling.

“But those who simply refuse to pay have to be pursued, and our partnership with DCAs ensures they will be.” HMRC will write to the debtor providing a final opportunity to pay or reach an agreement with the department before referring a debt to a DCA.

LINKS: Press release