Saturday, 24 October 2009

New HMRC powers to trace debtors

HM Revenue & Customs (HMRC) has taken new powers to trace people working as sole traders or limited companies who owe it money.


A large amount of correspondence requesting payment from debtors is returned as the addresses held are out of date, HMRC say.


The powers, which were in the new Finance Act, enable HMRC to request the most up-to-date contact address from a third party such as a local council, a company or an association.


In a statement, HMRC said: "The new power creates the lawful means for third parties to provide information to HMRC. A third party that complies with a notice issued on these grounds has discharged its statutory duty, even if a later change in circumstances means that the debt is not due."


The body added that if an organisation chooses to not comply with the request then it could face a fine of £300.


HMRC's draft guidance on the operation of its new powers can be read at http://www.hmrc.gov.uk/finance_bill2009/Inf-powers-contact-det.pdf

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