HMRC Exploring Private Sector Options

HM Revenue & Customs have been holding top level talks with the UK's largest debt collection agencies in a view to highlight the options for tax debt collection.

The HMRC has, in recent months, sent senior officials to at least three of the UK's leading DCAs, as it continues to seek out the best way of working with the private sector to recover its debts.

Although it is unlikely HMRC will step fully into debt sale, the department is looking to redouble its efforts to tap into the best the private sector has to offer – particularly on data use and analytics, tracing and state-of-the-art, compliant collections processes.

One industry source explained: "This is at a very early stage and there is a mountain to climb before anything gets off the ground, but HMRC is maintaining a constant dialogue with the industry."

If it was to outsource tax liabilities, HMRC will have o resolve outstanding issues surrounding data protection and privacy. And, while it has superior enforcement powers, many industry experts believes DCAs can show it a thing or two about establishing profiles of debtors, their income and assets.

An HMRC spokesman added: "The 2008 NAO report 'Management of Tax Debt' recommended that HMRC should explore the benefits and risks of using private debt collection agencies to recover some types of debts.

"We continue to do that and to routinely meet with and keep in touch with the wider debt and credit industry as everyone would expect us to do."

The NAO's report stated that the level of debt recorded on HMRC's debt management systems in 2008 totalled £21.5bn.

Original article courtesy of Credit Today.

back to home