Taxation: Debt Collection
The question
To ask the Chancellor of the Exchequer, what estimate HM Revenue and Customs has made of (a) the number of individuals expected to be subject to the proposed lower-value debt recovery powers in each of the next five financial years, (b) the average amount expected to be recovered per taxpayer, (c) the number of taxpayers expected to enter repayment arrangements rather than having deductions applied and (d) the number of households with children expected to be affected; and whether HMRC has modelled the distribution of affected taxpayers by income decile and by region.
Answered by Dan Tomlinson
The vast majority of taxpayers pay in full and on time. Most debts are resolved as taxpayers engage with HMRC and agree a way forward. The Government's proposals are intended to ensure fairness for taxpayers who pay what they owe by tackling a small minority who can afford to pay but repeatedly choose not to engage with HMRC despite numerous attempts. Each year, over 750,000 lower-value debts, collectively worth over £2 billion, are returned to HMRC from debt collection agencies where collection was unsuccessful.
As the consultation remains open, no final decisions have been taken on the design of the proposed measure. Therefore, the Government has not made estimates of its potential impacts. A full impact assessment will be published if, and when, legislation is brought forward.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →