During the period 2010-11, HM Revenue and Customs (HMRC) will use debt collection agencies to collect an additional £140m of tax debt.
It was revealed in Junes Budget 2010, that HMRC would use Debt Collection Agencies (DCAs) after the success of a pilot operation. Under industry and HMRC standards, the DCAs will be used to boost HMRC’s debt collection capacity and pursue lower value debts.
Quoted on the HMRC website, Nick Lodge, HMRC Director, Debt Management and Banking said, “We are all expected to pay our taxes on time and most do.
“DCAs give HMRC vital additional capacity, strengthening our ability to pursue the debts of those who decline to pay.
“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, giving them a final opportunity to pay or reach an agreement before the debt is referred to the DCA.
To find out more visit www.hmrc.gov.uk
