Revenue and Customs: Debt Collection

(asked on 18th November 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, which debt collection agencies are being used to send final opportunity letters on his Department's behalf.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 26th November 2020

As part of their overall collections strategy, debt collection agencies (DCAs) provide HMRC with additional capacity. The department keeps under review the cost effectiveness and value for money that using DCAs provides to the Exchequer and UK citizens. There are no current plans to move away from using agencies to send final opportunity letters.

The table below sets out the total expenditure on DCAs by HMRC and the amount spent instructing them to issue final opportunity letters.

Total spend

Final opportunity letter spend

2017/18

£ 32,099,756.77

£1,714,901.62

2018/19

£ 26,021,351.78

£1,302,490.63

2019/20

£ 26,163,245.08

£1,242,984.66

Final opportunity letters are sent on HMRC’s behalf by some of the debt collection agencies that the department works with. These are:

  • Advantis Credit Ltd
  • Bluestone Credit Management
  • 1st Locate (UK) Ltd
  • Past Due Credit Solutions

The full list of debt collection agencies that HMRC work with can be found on GOV.UK: https://www.gov.uk/if-you-dont-pay-your-tax-bill/debt-collection-agencies.

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