UK Doubles Down on Private Debt Collectors Used to Recover Taxes

  • Email
  • Print
  • Printing Articles

    1. Click here to print!
    2. ...or print directly from your browser by choosing File > Print... from the menu or by pressing [Ctrl + P]. Our printer-friendly stylesheet will make sure extraneous website stuff isn't printed.
    3. You're done!

    Close this message.

  • Comments
  • RSS

Her Majesty’s Revenue and Customs (HMRC), the UK equivalent of the US Internal Revenue Service (IRS), has doubled its use of private-sector debt collection firms over the last two years, according to a report from an accounting firm.

UHY Hacker Young said HMRC spent £14.8 million on external debt collection agencies in 2013 – up from £12.9 million the previous year, and more than twice the £6 million spent in 2011. The report covers the two years of the full implementation of the private debt collection program.

In the post-financial crisis austerity move, HMRC launched a private debt collectors tax recovery trial in 2009. After the success of the trial, the program expanded to full implementation with 10 contractors in 2011.

The report released over the weekend noted that there are now 13 private debt collection agencies working on the contract.

The news comes as the prospect of the IRS once again using private collectors becomes slightly more realistic with the introduction of a Senate bill that would direct the U.S. tax agency to do just that.

  • Email
  • Print
  • Printing Articles

    1. Click here to print!
    2. ...or print directly from your browser by choosing File > Print... from the menu or by pressing [Ctrl + P]. Our printer-friendly stylesheet will make sure extraneous website stuff isn't printed.
    3. You're done!

    Close this message.

  • Comments
  • RSS

Posted in Debt Collection, Government Receivables .

×
Subscribe to our email newsletters

Continuing the Discussion

We welcome and encourage readers to comment and engage in substantive exchanges over topics on insideARM.com. Users must always follow our Terms of Use. Also know that your comment will be deleted if you: use profanity, engage in any kind of hate speech, post an incoherent or irrelevant thought, make a point of targeting anyone, or do anything else we find unsavory. Your comment will be posted under your current Display Name, shown below. If you'd like to change your Display Name, you must update it on the My Profile page.

Leave a Reply