HMRC outsources debt collection

HMRC is proposing to outsource some of its debt collection service to private-sector suppliers. It plans to run pilot schemes, including outsourcing debt collection, to low-value debt specialists and selling debts deemed irrecoverable as part of an assessment on how debt could be managed more effectively.

The Federation of Small Businesses has expressed concerns that the sympathetic stance taken by HMRC on the plight of small businesses during the economic downturn could stop with outsourced collection.

HMRC reject this view, stating that the collectors will have to work to HMRC’s standards. People will be expected to behave well and treat debt respectfully.

Time will tell …

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