Recommendation 11

In addition to its own debt management staff, HMRC also uses private sector debt collection agencies to increase its capacity and work with specific customer groups.26 HMRC works with these agencies through an arrangement called the ‘debt market integrator’, which is run by Indesser (a joint venture between the Government and TDX- Equifax). The agencies do not undertake field visits—they are limited to desk-based 19 Q 91; C&AG’s Report, para 3.24; Written evidence submitted by Jim Harra, Chief Executive and First Permanent Secretary of HMRC, dated 28 January 2022 20 C&AG’s Report, para 3.13 to 3.14 21 Qq 85–87; C&AG’s Report, para 3.10 22 Qq 90, 91 23 Q 91; C&AG’s Report, para 3.24; Written evidence submitted by Jim Harra, Chief Executive and First Permanent Secretary of HMRC, dated 28 January 2022 24 Qq 62, 120, 125, 129 25 Committee of Public Accounts, HMRC Annual accounts 2020–21, 37th Report of Session 2021–2022, HC 641, 11 February 2022 26 Qq 63, 64, 92 12 HMRC’s management of tax debt activity—and have collected £2.3 billion of tax debts since 2015; a return on investment of more than £18 for every £1 spent. HMRC currently has a budget of around £26 million per year to contract private sector agencies, and it expects agencies to collect almost £500 million of debt this year.27 27 Qq 63, 64, 92; C&AG’s Report, para 3.19 HMRC’s management of tax debt 13 2 HMRC’s use of data to manage increased tax debt HMRC’s use of data to manage taxpayers in debt