Debt collection agencies used by HM Revenue & Customs (HMRC)
The contracts have been signed with four companies. In the June 2010 Budget it was announced that, following a successful pilot, HMRC would use Debt Collection Agencies (DCAs) operating under industry and HMRC standards to boost HMRC’s debt collection capacity and help the pursuit of lower value debts.
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.”
Before the debt is referred to a DCA, HMRC will write to the debtor providing a final opportunity to pay or reach an agreement with the department.
We understand this is now operating.
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