HMRC signs new debt collection contracts

Date: 4th August 2010

HM Revenue & Customs (HMRC) has announced that it is to enlist the help of debt collection agencies (DCAs) to recoup some £140 million in tax debt this financial year.

The department has signed contracts with Commercial Collection Services, Credit Solutions, Fairfax Solicitors and iQor Recovery Services for debt recovery during the 2010-11 financial year.

It follows a successful pilot which saw HMRC employ a DCA to help collect tax debts with industry and HMRC standards.

Nick Lodge, HMRC director of debt management and banking, said: "We are all expected to pay our taxes on time and most do.

"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 Jacob Williams