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HMRC Tax Debts

HMRC is an organisation with a spread and reach that might be likened in size as Mike Ashley once remarked in reference to his Sports Direct empire, as an oil tanker.

HMRC is a huge organisation. As with many huge sprawling organisations it will use other people to assist it with its work when it is cost-effective, useful, and appropriate to do so.

Why Does HMRC Use Debt Collectors?

In the case of HMRC Debts it uses debt collectors who are employed by debt collection agencies to collect in money that is due from the taxpayer.

HMRC’s systems are well established with extensive IT systems to organise the collection of monies that it needs to collect in from millions of taxpayers. It could not be so successful in the collection of monies owed to it if it was not properly set up. Most people do not wish to owe money to HMRC but from time to time certain individuals or businesses may become or be at risk of insolvency. Their cashflow position may mean that they simply do not have sufficient readily available cash resources to pay money that is due to HMRC. This can happen for a variety of reasons but in the event that HMRC has issued its Chasing Letters and these have had no effect then it is likely that HMRC will up the ante and change its gear, taking a slightly more aggressive approach.

This may involve the appointment of HMRC Debt Collection Agencies. As fraud is so rife in society it is important that wherever possible that you key your eye out for it. Be aware that there are so many scammers and fraudsters out there and make sure that you are dealing with a collector who is indeed approved by HMRC. HMRC publishes details of those HMRC Debt Collection Agencies that it uses and that you can therefore be more assured that you are dealing with an organisation that are authorised to collect in monies on behalf of HRMC from the taxpayers.

Who Are The Approved HMRC Tax Debt Collectors?

HM Revenue and Customs (HMRC) can collect your debt through a private debt collection agency.

The agency will write to you and you should pay them directly.

Debt collection agencies used by HMRC are:

  • 1st Locate (trading as LCS)
  • Advantis Credit Ltd
  • Bluestone Consumer Finance Limited (trading as Bluestone Credit Management)
  • BPO Collections Ltd
  • CCS Collect (also known as Commercial Collection Services Ltd)
  • Moorcroft
  • Oriel Collections Limited
  • Past Due Credit Solutions (PDCS)

Those are the HMRC Debt Collectors approved as of 14 May 2021. Please check HRMC website for the approved HMRC Debt Collectors regularly as the list can be updated at any time.

If I Miss An HMRC Tax Deadline Will HMRC Tax Debt Collectors Turn Up Immediately?

If you miss an HMRC tax deadline the HMRC debt collectors will not usually turn up very shortly after the deadline has passed. Generally, HMRC will provide the taxpayer with a significant opportunity to discharge the unpaid tax that is due for payment before they will trigger the more formal debt collection processes used by external HMRC debt collectors.

The likelihood is that you may well have been given a great many months before HMRC will take aggressive steps to appoint HMRC debt collectors to pursue you for the unpaid tax debt.

HMRC will usually inform you that they are appointing HMRC debt collectors so you will typically have plenty of notice of the situation and it is unlikely to be an unannounced surprise.

HMRC how does not have to appointed HMRC debt collectors to recover money from you. They can in certain instances recover money from you through your bank account(s) or instruct Bailiffs to seize goods which can thereafter be auctioned off to settle the HRMC tax debt. This will lead to further costs being incurred and ultimately it is you that has to pay for these so it is vitally important that you do not ignore the situation and that you take action as the very first available opportunity that you learn of HRMC taking enforcement action against you.

The Cardinal Principle Of Dealing With HRMC

Please please please (!) do not ignore the situation.

If nothing else please please please (!) even if you cannot pay the HMRC tax debt, phone up HMRC, write them a letter, speak to your local MP who might be able to liaise with them for you or send HMRC an email. The most important thing is that you engage with HMRC and participate in the process. They want to know that you are taking the matters seriously.

They want to know that you are trying to resolve the situation. If you do nothing to get in touch and contact them, they will be left with little alternative other than to assume that you are hoping that the matter will simply go away. As a general rule HMRC tax debts never simply disappear and go away – they are one of those things in life that you can be reasonably certain will always arise ie. death and taxes.

How To Stop An HMRC Tax Debt Collector Being Appointed

In order to stop an HMRC debt collector from being appointed, you need to engage quickly with HMRC. One way that you may be able to resolve the position is to negotiate a Time To Pay Arrangement with HMRC. That is where we can help you because if you are uncertain as to how to go about the matter we can negotiate on your instructions a Time to Pay Arrangement for you with HMRC. Help is just a click (or two!) away. Help that we provide includes initially to assess your situation Free Confidential Expert Advice.

Powers Of The HMRC Tax Debt Collectors

The powers of the HMRC tax debt collectors are in reality quite limited. These debt collection agencies cannot seize your goods like Bailiffs. They cannot force their way into your premises.

Even if you invited the HMRC tax debt collector into your premises they cannot seize goods from you. HMRC has its wide-ranging powers and they will potentially use them. The appointment of the HMRC tax debt collector is should nevertheless be treated very seriously because it can be the start of long, expensive and stressful action that HMRC can take to collect in unpaid taxes due to the Exchequer. The golden rule is to engage, engage and engage.

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Disclaimer

This page: HMRC Tax Debt Collectors is not legal advice and should not be relied upon as such. This article HMRC Tax Debt Collectors is provided for information purposes only. You can Contact Us on the specific facts of your case to obtain relevant advice via a Free Initial Consultation.