BPO Collections for HMRC Debt – Warning Not To Ignore

Are you worried about a letter you received from BPO about HMRC debt? It’s okay, you’re not alone. Each month, over 12,000 people come here for advice on debt issues. In this article, we’ll answer your questions about:

• Who BPO Collections are and why you need to pay them.
• If the HMRC debt collector’s letter is real.
• How you can lower your repayments.
• What debt collectors can legally do.
• How to stop BPO Collections from contacting you.

We know how hard it can be to owe money. We understand your worries about dealing with debt collectors and how it can impact your daily life, as some members of our team have been in your situation too. Here’s how you can deal with BPO Collections and HMRC debt effectively and with less stress.

Does HMRC use BPO Collections?

Yes. HMRC uses the BPO debt collection agency to recover unpaid tax bills, overpaid credits and VAT debt. However, they also use other debt recovery companies.

Take a look at what happened to one person that BPO contacted:

Source: Moneysavingexpert

Should you ignore BPO collections?

No. It’d be a costly mistake if you ignore a letter from a BPO debt collection agency when they contact you!

HMRC may have attempted to contact you without success which is why BPO took over the task. You may have missed resolving the money owed with HMCS directly.

In short, you could find yourself in legal hot water over an unpaid Revenue & Customs debt. Moreover, HMRC doesn’t have to take you to court to enforce the debt. So what happens?

If BPO Collections informs HMRC they failed to get to pay the money owed, HMRC could:

• Instruct their own enforcement officers to seize assets to the value of the amount owed on a tax debt. An additional fee of £75 is added to the owed debt when you get a notice of the impending visit!
• Take money from your bank account if the debt owed is over £1,000 and it doesn’t place you in financial hardship
• Place an attachment on your earnings which means an employer sends some of your income directly to HMRC
• Place a ‘charging order’ on your property and when it sells, part of the proceeds goes to HMRC to pay off money owed
• Take money from a pension pot
• Make you bankrupt!
• Levy a county court judgement against you

Is the HMRC debt yours?

It’s always worth checking whether BPO Collections has contacted the right person over an alleged HMRC debt. Mistakes happen, whether clerical or other. 

So, the first thing to do when you get a letter from the debt recovery company is to ask them to prove the debt is yours. You have every right to make the request on any debt you allegedly owe, including money owed to HMRC!

Should you pay BPO Collections?

It could be a wiser move to respond to BPO Collections ltd if the debt recovery company proves the HMRC debt is yours. Entering into negotiations with them could be the better option.

However, you should always seek advice from one of the UK’s debt charities as well. Even over an HMRC debt. Plus, their advice could be invaluable in helping you decide how to deal with the problem.

That said, make sure you inform BPO Collections that you’re seeking independent free debt advice so they know where they stand. You should try to pay what’s owed or ask for Time to Pay once you’re ready to discuss the debt with the debt recovery company.

However, don’t wait too long to contact BPO Collections otherwise things may escalate out of your control.

If, however, you feel the amount owed to HMRC is incorrect, then contact HMRC directly as soon as you can. The more you remain in touch with them and a debt recovery company, the better the outcome would be!

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How can you pay an HMRC Debt?

If your finances allow, you should pay an HMRC debt as soon as you can. When you ignore BPO Collections ltd and correspondence from HMRC, you could face serious legal action. You may even face imprisonment although this rarely happens in most cases!

If you’re struggling with money which many people are these days, you should ask for a Time to Pay Arrangement to be set up. This would allow you to spread the cost of paying off an HMRC debt.

These arrangements are typically set up over six months or sometimes a little longer! But rarely for much longer and HMRC won’t offer any arrangements to pay that last for 12 months or more. Unless there’s a compelling reason that is!

Does an HMRC Debt affect your credit rating?

No. An HMRC debt does not affect your credit rating because it doesn’t involve any sort of ‘credit’. The money you owe is a debt but not related to any credit you took out.

So unlike a credit card debt or a bank loan debt, an HMRC debt will not affect your credit history in any way. In short, your credit rating is not impacted so you won’t have any trouble getting a loan, mortgage or credit card!

So, it won’t appear on your credit file!

» TAKE ACTION NOW: Fill out the short debt form

Should you settle an HMRC debt?

Yes. Settling an HMRC debt sooner rather than later is the best option. But you may not be able to pay off the whole amount which is a problem many people face.

The best course of action is to stay in touch with the debt recovery company at all times. Respond promptly to their correspondence and if you think the amount is incorrect, you should contact Revenue & Customs directly!

Can BPO take money from my pay?

No. BPO is a debt recovery company. They don’t have the power to take money from your pay. Only HMRC can take any money from your bank account or place an attachment on your earnings.

In short, your employer will dock money from your pay which goes directly to HMRC to pay off the money you owe.

Sometimes Revenue & Customs will adjust your tax code if you’re on a PAYE scheme. It means you’d pay more in income tax than you did before you had an HMRC debt.

Can you stop BPO Collections from contacting you?

No. Debt collection companies have the right to contact you over an alleged debt. However, you can write asking them to only contact you in certain ways and at certain times.

BPO Collections must respect your request. If they continue to call you at all hours when you asked them not to, you should file a complaint with their head office.

After this, you have the right to lodge a complaint with the FOS.