HMRC Quadruples Spending On Private Debt Collectors

The money spent by the UK tax authority on private debt collectors has quadrupled in the past five years, suggesting an increasingly “aggressive” approach to collecting unpaid tax, accountants have warned, the Financial Times reported. HM Revenue & Customs spent £26.3m on private debt collectors in 2018, up from just £6.2m in 2014. It is part of an increase in the amount handed to private sector debt agencies by HMRC, which has spent more than £140m on their services since 2011. The figures were compiled by accountancy firm UHY Hacker Young using HMRC records of departmental spending exceeding £25,000. Debt management issues have been under increasing scrutiny in the UK. Earlier this month the House of Commons justice committee called for independent regulation of the bailiff sector. Meanwhile, research by Citizens Advice has found the portion of people reporting debt problems relating to public sector organisations doubled from 21 to 40 per cent in the five years to 2017-18. Read more