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Published on 28 February 2022

Modernising tax debt collection from non-paying businesses

LITRG have recently responded to HMRC’s call for evidence ‘Modernising tax debt collection from non-paying businesses’. 

Illustration of debt paperwork with hands coming out of them reaching for a lifebuoy
Credit: Aniwhite /

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Our response concentrates on the part of the call for evidence relating to how collection of debt from non-paying businesses could be improved. We highlight some of the reasons why non-payment may arise and recommend HMRC proceed with a degree of caution and with a greater awareness of what might be causing delay when pursuing collection of these debts.

We also recommend that HMRC carry out some specific research to better understand why some debtors tend to pay when enforcement action is either begun or threatened, and suggest HMRC make its VSTRS service more widely available in the voluntary sector community to aid advocacy on behalf of debtors by specialists such as money advisers.

The call for evidence can be found here.

The LITRG response can be found here.

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