Recommendation 23

Nonetheless, HMRC acknowledged that the number of vulnerable customers it has identified is lower than it would expect and that the take-up of some of its offers of support, such as the Breathing Space scheme, is low (Breathing Space is the government’s Debt Respite Scheme, by which HMRC abides. It allows debtors to pause debt pursuit activity for 60 days if an independent debt adviser agrees that they are eligible).57 51 C&AG’s Report, para 2.37. The Financial Conduct Authority’s characteristics of vulnerability are: Health (health conditions or illnesses that affect the ability to carry out day-to-day tasks); Life events (life events such as bereavement, job loss or relationship breakdown); Resilience (low ability to withstand financial or emotional shocks); Capability (low knowledge of financial matters or low confidence in managing money, and low capability in other relevant areas such as literacy or digital skills). 52 Q 59 53 Q 59; C&AG’s Report, para 2.3 54 C&AG’s Report, para 2.36 55 Qq 59, 60 56 Qq 60, 66 57 Q 59, 68; C&AG’s Report, para 3.5 HMRC’s management of tax debt 17 Rogue businesses