This isn’t a full fact find, Thrifty Family doesn’t give advice. We work with The Debt Advice Service who provides information about your options.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
My name’s Janine, and I’m a mum of two who’s always been passionate about trying to cut down spending costs. I am now sharing as much financial knowledge as I possibly can to help your money go that little bit further.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
Did BPO Collections for HMRC debt fall through your letterbox? Did it send you into a panic? If so, you’re not alone.
You may think the letter is a scam but sadly, it’s likely a real problem that needs to be dealt with! Check out my post to find out how to deal with BPO collections so the outcome is positive.
Do you have to pay BPO Collections?
You might not have to pay BPO Collections.
If you genuinely can’t afford your debt repayments then looking into whether you could have your written off might be just what you need.
If you want to find out whether you qualify for having debt written off or payments lowered then fill out the short form below.
This isn’t a full fact find, Thrifty Family doesn’t give advice. We work with The Debt Advice Service who provides information about your options.
Who are BPO Collections?
BPO Collections are one of the Scottish-based debt collection agencies whose core business is chasing down people who owe money to other businesses. The business was established in 2006.
Is BPO a debt collection agency?
Yes. BPO is one of the many debt collectors that operate in the UK. The business is based in Scotland but they chase owed debts all over the country! So, you could get a debt letter from them.
When you owe tax, BPO could be instructed to recover the money owed on behalf of HMRC. If you get a letter from them, it’s best not to ignore it because the problem just gets worse!
Can you lower your repayments?
If you’re struggling to pay back your debt, then you might qualify for a debt solution. Some solutions lower your monthly payments while others write off a portion of your debt.
To find out whether they could work in your situation, hit the button below.
You should always check whether a letter from a debt collection company or HMRC is legitimate or a scam. You can check if an HMRC letter is a scam on the government website.
What Is an HMRC Debt?
A debt to Revenue & Customs is a serious business. When you get a debt letter, it’s best not to ignore it. It’s money you owe to HM Revenue & Customs whether it’s unpaid taxes, VAT payments, tax credits overpayments or other. When you don’t settle the debt, additional fees and penalties are added to the original money owed!
It makes it harder to pay off what you owe!
You should always inform HM Revenue & Customs when your circumstances change to avoid receiving overpayments or not paying a tax bill on time. It’s especially important when it comes to telling them about any changes in your income or circumstances!
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:
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
What other debt collection agencies does HMRC use?
Apart from BPO Collections, HMRC could outsource the work of recovering a debt to other third-party companies. I’ve listed some of them here:
1st Locate (trading as LCS)
Bluestone Consumer Finance Limited (trading as Bluestone Credit Management)
Advantis Credit Ltd
CCS Collect (also known as Commercial Collection Services Ltd)
Oriel Collections Limited
Past Due Credit Solutions (PDCS)
You should try to respond as quickly as possible when you get a letter from BPO or any other debt recovery company about an HMRC debt. It’s the only way to prevent things from escalating out of control!
What can debt collectors legally do?
Debt collectors must follow the law when chasing you for an HMRC debt. In short, they must remain polite and show understanding if you’re struggling with bills and debts!
That said, there are things that debt recovery companies cannot do which include when trying to recover an HMRC debt.
BPO Collections cannot do any of the following:
Threaten or harass you which includes calling or texting you incessantly
Discuss an HMRC debt with your family, neighbours, friends or employer
Force their way into your home
Seize your possessions or clamp your car
Pretend they are bailiffs (enforcement agents)
Use papers and documents that appear to be issued by the courts
Visit you at work
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.
Can you complain to the financial ombudsman service?
Yes. You can complain to the financial ombudsman service when a debt recovery company harasses or threatens you. That said, if a representative does anything that’s against the law, you can report them to their head office first.
After this, you should contact the FOS and report them.
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!
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!
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 an HMRC debt make you bankrupt?
Yes. Revenue & Customs could make you bankrupt over an unpaid HMRC debt. You wouldn’t have to pay the debt if this happens. But Revenue & Customs will sell your assets to recover the money you owe on the debt!
It’s worth noting that this would be a very last resort measure and would apply if the debt is over £5,000. Also, it could happen if you refuse to accept an arrangement to pay.
“It will only get worse” 😩
It’s cliché to say, but with debt it’s true; the longer you leave it, the worse the problem gets.
There are straightforward and effective ways to deal with debt, but you have to know your options.
Fill out the short form to find out about the debt solutions that could reduce your monthly payments or even write off some of your debt.
My name’s Janine, and I’m a mum of two who’s always been passionate about trying to cut down spending costs. I am now sharing as much financial knowledge as I possibly can to help your money go that little bit further.
How to beat BPO Collections debt 