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HMRC to Utilise Debt Collection Agencies

Her Majesties Revenue and Customs (HMRC) will turn to debt collection agencies to chase down late payers, it was revealed yesterday.

HMRC will being the process this week of writing to selected businesses and individuals telling them that a debt recovery company will be appointed to collect the debt if they fail to settle the bill.

A spokesman said: “We have identified a number of potential debt packages to trial. These cover a range of types of tax, sizes and ages of debt, and include both individual and business debtors.”

During the six month trial, debt collection firms will be permitted to telephone and write to debtors, but will not be able to pay visits or begin litigation work.

The move follows the lead of the Department for Work and Pensions, amongst other departments, who already utilise debt collection agencies.