What to do if the tax collector calls

If a member of the debt collection team from HM Revenue & Customs arrives at your door, what can you do? What is the best way of dealing with outstanding tax liabilities?

HM Revenue & Customs (HMRC) has a large amount of tax to collect and is beginning to ramp up the pressure on those with outstanding liabilities.

Having ceased field operations during the last 18 months, HMRC’s bailiff team has begun once again making unannounced visits.

These visits can understandably be distressing and embarrassing and can be highly visible to employees, customers and neighbours.

It is well documented that due to the size of HMRC’s operation there have been reported instances of the debt collection team making visits where no tax is due.

This has happened due to HMRC’s systems causing returns to have not been processed. 

What can you do?

If a member of the debt collection team does arrive, what can be done?

• Taxpayers are not legally obliged to let HMRC enter their property. The taxpayer should have already received a letter from HMRC’s Debt Management team (DMB) explaining the reason(s) for the visit. Taxpayers are advised to immediately call their accountant or advisor and ask them to liaise with HMRC on their behalf


• If HMRC have already entered the property, the taxpayer is entitled to ask them to leave.


• If action has been taken under criminal law by HMRC then the taxpayer should seek appropriate legal representation immediately.

If the tax is due to HMRC, it will be necessary to engage with them to ensure the matter is dealt with.

HMRC use visits when they don’t know what is actually happening and often the taxpayer will have received several letters requesting a reply. 

HMRC understands that businesses are facing challenging times at the moment and there is a series of support measures in place, for example time to pay arrangements can establish a repayment plan allowing payment to be made over an extended period of time. 

Sometimes a more formal solution is required.

This doesn’t necessary mean there is a need to wind up the business. Often when the payment is achievable but over a period of several years HMRC will be supportive of an Individual Voluntary Arrangement / Company Voluntary Arrangement (IVA/CVA).

This is a structured repayment proposal that would include all the creditors of the individual / company.

Further help available

If you have received a visit from HMRC’s debt collection team or are anticipating one then please do get in touch with your usual Bishop Fleming contact or a member of our Restructuring Team.

You can also check out our other articles and guides in our Restructuring Knowledge Hub.