HMRC to use debt collection agencies

Date: 26th October 2010

As the deadline for paper-based self-assessment tax returns approaches, taxpayers could do well to remember that HM Revenue & Customs (HMRC) has vowed to use debt collection agencies (DCAs) to chase tax evaders and avoiders.

Earlier this year, HMRC confirmed that after a successful trial it will use a number of debt collection agencies to chase up taxpayers in order to cut the tax debt by £140 million.

It comes as the coalition aims to prosecute five times the number of tax cases than was achieved under the previous Labour administration.

Speaking at the time of the announcement, Nick Lodge, HMRC director of 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."

Posted by Emily Smith