HMRC currently has contracts with eight debt collection agencies (DCAs). A list of the agencies is available on gov.uk. 

HMRC has recently expanded its guidance to explain that DCAs can contact taxpayers by letter, phone and text message. DCAs cannot visit a taxpayer’s home or workplace or take further enforcement action.

DCAs can accept payment in full or agree a time to pay arrangement within certain criteria. If neither of these options is possible, the DCA will pass the case back to HMRC to deal with. DCAs do not have direct access to HMRC’s systems, and cannot deal with any dispute over the amount of the debt. Such cases will also be passed back to HMRC for further action. 

The guidance explains that when a DCA makes a phone call they will ask some security questions, and whether the taxpayer wants to give verbal consent (valid for 24 hours) to discuss the debt with an agent or other third party. The person will need to complete a form 64-8 for consent lasting longer than 24 hours, and the DCA will need to contact HMRC to check that authority is in place. 

Complaints about DCAs can be made to the DCA, in which case the process should meet the requirements set out by the Financial Conduct Authority, which supervises all the DCAs. It is also possible to complain to HMRC.