Collection Agency

I recently received a letter from a Collection Agency regarding VAT owed. I was surprised as I have never received one letter from HMRC. When I spoke with HMRC they said they had sent letters to me and I did not respond. When I asked them what address it was an old address from over two years ago. Even though I had changed my address with HMRC over two years ago. They said I have to discuss the dept now with the Collection Agency. As it happens the Collection Agency is the one I was fighting with regarding a parking ticket. So I took them to court and won. So I don't want to deal with them. Are HMRC correct in doing this?

HMRC routinely pass VAT collection/VAT debts onto third party debt collection agencies. Best way to fix this is to fix the issue itself. Do you have outstanding VAT returns, have you filed VAT returns but not paid all of them in full and on time? Have you ceased to trade but forgot to tell HMRC VAT team? Access your VAT gateway to see what the state of play is in terms of what HMRC think you owe and then deal directly with HMRC until the matter is resolved. Once resolved, HMRC will withdraw the 3rd party debt collector. You do not have to discuss anything with the 3rd party debt collector, they have no access to HMRC records nor in a position to discuss or negotiate your situation, so if you don't think you owe anything, if you think HMRC are wrong then deal with HMRC. If on the other hand you do owe the money and there is no dispute, then pay the debt collector. With VAT, any change of address must be made to the VAT team, if you just wrote to HMRC re. corporate tax or personal tax then they will not automatically update your address for VAT, your address for VAT purposes can often be different to your registered office (ie, the VAT address should be your trading address), this is why HMRC do not automatically update the VAT address as a business can change its registered office but not change it's trading address, or vice versa, etc.

Hi,

If the company have debts which are not being addressed then we do have the right for these to be purused via third party debt collection agencies. Please liaise with this company to arrange payments.

Please also update your address with HMRCby following the link below:

Change your VAT registration details

Thank youi.