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HMRC have curbed their use of private debt-collectors by half, according UHY Hacker Young.
Research by the accountancy group shows the Revenue spent £6.8m on retrieving money through third-parties in 2014, compared with a record £14.8m in 2013.
“Debt collection agencies are rarely the most appropriate way for HMRC to collect unpaid taxes,” said Mark Giddens, head of UHY Hacker Young London’s private client department
HMRC have curbed their use of private debt-collectors by half, according UHY Hacker Young.
Research by the accountancy group shows the Revenue spent £6.8m on retrieving money through third-parties in 2014, compared with a record £14.8m in 2013.
“Debt collection agencies are rarely the most appropriate way for HMRC to collect unpaid taxes,” said Mark Giddens, head of UHY Hacker Young London’s private client department
“There are often issues regarding communication within [the department]; when an outside agency is involved… there is a significant risk of action being taken on the basis of incorrect or out-of-date information.
He warned that debtor taxpayers could find themselves being erroneously “chased by a private sector debt-collector focused on hitting its target”, and he urged tax officials to be “absolutely certain” that their information is accurate and current before instigating collection procedures”.
“If errors are made, then taxpayers are left out of pocket and fighting for their own money against a government agency,” said Giddens.
