HMRC debt collection activities restart

HMRC published a new policy paper on 30 June 2021 concerning their debt collection activities as the UK emerges from the pandemic. HMRC had paused many debt collection activities in the face of so much suffering by individuals and businesses during the pandemic.

In the policy paper, HMRC confirms that they will now begin contacting taxpayers who have fallen behind with their tax during this difficult time. HMRC states that ‘at all times, we will take an understanding and supportive approach to dealing with those who have tax debts or are concerned about their ability to pay their tax’.

HMRC also says the key message to take on board is that ‘if you can pay your taxes then you should do so – but if you’re struggling, we want to work with you to agree a plan based on your financial position’.

Options for paying debts to HMRC include making a payment plan using the Time to Pay service.

HMRC has also confirmed that, from September 2021, where taxpayers refuse to enter into communication concerning outstanding debts that they may start the process of collecting the debt using their enforcement powers.