Income tax debt collection

Christmas Spirit appears to be in short supply at HMRC this year. Many taxpayers have recently received unpleasantly worded letters from its debt collection department. These letters refer to tax liabilities which are currently payable and, in many instances, are even received before any other communication or payslip advising that the tax liability is due.

Elaine Skelton, Head of Personal Tax at Barber Harrison & Platt comments that “this is causing taxpayers a great deal of worry. It is our experience that the vast majority of individuals would pay upon receipt of a simple reminder and payslip.  However, HMRC do not seem to be giving taxpayers the chance to make a payment in the usual way.”

Ms Skelton recommends that anyone receiving such a letter should contact their accountant as soon as it is received from the debt collection agency, as swift action can prevent interest and surcharges arising.