Tax debt collection

Chris Holmes and Jennifer Jones set out HMRC’s powers to collect unpaid taxes from individuals and businesses

In the June edition, we looked at the principles when dealing with HMRC’s Debt Management and Banking (DMB) Unit and some practical tips for agreeing a Time to Pay Arrangement (TTPA) with HMRC. Whilst the quantum and nature of the tax debt is significant in determining the likelihood of agreeing such an arrangement, understanding where the debt is in the collection process is also key to anticipating how much time a taxpayer may have under any agreement and what HMRC’s attitude may be. This article looks at the tax debt collection process and some of the powers available to HMRC to recover tax debts.