The FT reports that the money spent by HMRC on private debt collectors has quadrupled in the past five years.
This is indicative of a more “aggressive” approach to collecting unpaid tax.
HMRC spent £26.3m on private debt collectors in 2018, up from £6.2m in 2014.
Michelle Sloane, senior associate at law firm RPC, said HMRC had originally intended to use private debt collection for wealthier individuals but the pressure to boost revenue had seen it cast a wider net.
“They are now going after lower income individuals in relation to tax credit debts and things like that, and scaring the life out of them.”HMRC don't give a toss:
“HMRC is committed to providing extra support for vulnerable customers, including debtors. We have specialist teams dealing with vulnerable customers who need extra support because they have difficulty resolving their inquiries through the standard HMRC contact channels. This includes a specialist team dealing with those vulnerable customers in debt.”As we know, HMRC's concept of dealing with the "vulnerable" is to farm them out to third parties.
Tax does have to be taxing.
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Am all for treating vulnerable taxpayers sensitively but this is indicative of an organisation which has wholeheartedly failed to collect debt inhouse. With a few exceptions the majority of Field Force Collectors and contact centre 'debt agents' would not last 5 seconds in the real world of debt collection. Sack them all and get the private sector more involved.
ReplyDeleteField Force Collector's hands are tied. HMRC insists that Collectors, whilst doing a Distraint call, must recover all costs plus 50% of the debt, otherwise they are not allowed to levy. Very few people have enough assets to cover that, especially those on benefits etc.
DeleteOutside agents have no such restrictions seizing, for example, the family kettle!
Go tell your MP and HMRC management to untie our hands!