TaxCorporate TaxTaxman farms out debt collection in £140m chase

Taxman farms out debt collection in £140m chase

HM Revenue & Customs seals contracts with four external debt collections agencies in efforts to rake in an extra £140m

The taxman is farming out part of its debt collection operations to four
companies in moves to rake in an extra £140m of tax debt.

HMRC has signed contracts with Commercial Collection Services Ltd, Credit
Solutions Ltd, Fairfax Solicitors Ltd, iQor Recovery Services Ltd to boost
HMRC’s debt collection capacity and help the pursuit of lower value debts.

Following a successful pilot,HMRC announced in the Emergency Budget that it
was planning to use Debt Collection Agencies.

Safeguards have been put in place to ensure the companies operate under
industry and HMRC standards.

Nick Lodge, HMRC Director, 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.”

Before the debt is referred to a DCA, HMRC will write to the debtor giving
one final opportunity to pay or reach an agreement, the taxman added.

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