Her Majesty's Revenue and Customs are reportedly bringing in debt collectors to gather up an estimated £1.35 billion worth of extra tax.
The trong arm tactics are expected to bring in extra tax revenue ten times the amount currently brought in, and will also earn the debt collector companies around £70 million.
However handing debts over to collectors is not a move that has been met with praise. Debt collection agencies are known for their aggressive methods of recouping debts, interest is charged, letters are sent, and bailiffs are sent to arrive at doors with the intention of taking property.
Since many of the people who owe tax only recently found out sue to HMRC's own internal error, the introduction of debt collectors has been heavily slammed.
Elaine Clarke, managing director of Cheap Accounting, says: “How dare HMRC use our money to get these companies to collect debts after it has failed to get the tax right for millions of people for a number of years? Among those with unpaid bills could be those on benefits or the elderly — the most vulnerable. They will be scared witless by debt collectors knocking on their door.”