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HMRC to review debt collection?

Published on 15 Jul 2009 under category: legal

HM Revenue and Customs (HMRC) could be set to review its debt collection policies after it was revealed that officials have been pursuing "phantom tax".

A source commented to the Mail on Sunday that charges which were issued in error may account for as much as £2 billion which is being chased up by debt collectors.

It is now reported that HMRC could review the ways in which it pursues money.

The body has been using a pilot scheme to trial private-sector debt collection agencies.

This is set to be reviewed due to concerns over tax demands being issued in error, which it has been claimed usually relates to instances such as penalties for the non-filing of accounts at firms that do not employ workers or trade.

In other news, MW Pensions is reported to be considering taking legal action against HMRC after some of the retirement income company's directors were arrested in connection with suspected fraud crimes.