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Debt collection agencies to be used by HM Revenue & Customs

In an effort to further enhance HMRC’s collection of tax, it has been announced in the Budget that, following a successful pilot during 2009/10, debt collection agencies will now be used to pursue and collect debts.

The Government has announced that high risk and high value debts will be pursued in house, and the debt collection agencies will only be used to collect smaller, less risky amounts. They have estimated that they will collect an additional £140 million of tax that would otherwise not be pursued.

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