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HMRC is spending over £5 million a month on private debt collectors as the government intensifies efforts to close the tax gap, sparking concerns among business groups about added pressure on already strained firms.
HMRC is spending more than £5 million a month on private debt collection as Rachel Reeves pushes ahead with a wider effort to tighten tax receipts, in a move critics say will add pressure to households and firms already feeling the squeeze. According to data cited in the Birmingham Mail, payments to TDX totalled more than £21.1 million between October 2025 and February 2026, with February’s bill rising sharply from the previous month.
The government’s tax drive comes against the backdrop of a sizeable gap between what should be collected and what actually reaches the Treasury. Reporting from Yahoo Finance said the UK tax gap for 2023-24 was about £46.8 billion, while Reeves has set out a strategy aimed at raising billions more each year by improving compliance and collection.
HMRC’s approach is not limited to outsourced debt recovery. Its November 2025 tax debt strategy update, published on the UK Tax Policy Map site, set out plans to modernise collection methods, including proposals around mandatory Direct Debit for some PAYE and VAT payments and changes that would bring more self-assessment tax into the system during the year. The department has also been backed by extra funding to expand compliance and debt-management capacity, according to Financial Accountant.
Business groups and advisers are warning that the crackdown could create fresh headaches for smaller firms. Kenny MacAulay, chief executive of Acting Office, told the Birmingham Mail that greater use of private collectors would “rub salt in the wound” for businesses already facing higher taxes, operating costs and interest rates. Lucy Sauvage, a senior director at Alvarez & Marsal Tax, said dealings with HMRC can be time-consuming and that some debt agents can be “a little overzealous”.
HMRC said most taxpayers comply with their obligations and that nine in ten pay on time. The department added that it takes a supportive approach to those with arrears and offers instalment plans for customers who engage with it. With Reeves also signalling a broader push to close the tax gap, the dispute over how aggressively HMRC should chase overdue payments is likely to intensify.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article references data up to February 2026, with the latest publication dated 29 April 2026. ([malaysia.news.yahoo.com](https://malaysia.news.yahoo.com/hmrc-spending-5m-month-debt-154808901.html?utm_source=openai)) The information appears current, with no significant discrepancies found in the timeline. However, the reliance on a single source for the £5 million monthly expenditure figure raises concerns about the freshness and originality of the data.
Quotes check
Score:
7
Notes:
The article includes direct quotes from individuals such as Kenny MacAulay and Lucy Sauvage. ([malaysia.news.yahoo.com](https://malaysia.news.yahoo.com/hmrc-spending-5m-month-debt-154808901.html?utm_source=openai)) However, these quotes cannot be independently verified through the provided sources, raising concerns about their authenticity and potential reuse from other sources.
Source reliability
Score:
6
Notes:
The primary source is the Birmingham Mail, a regional newspaper. While it is a known publication, its reach and influence are limited compared to national outlets. ([malaysia.news.yahoo.com](https://malaysia.news.yahoo.com/hmrc-spending-5m-month-debt-154808901.html?utm_source=openai)) The article also references Yahoo Finance, a reputable source, but the reliance on a single source for critical financial figures diminishes the overall reliability.
Plausibility check
Score:
7
Notes:
The claims about HMRC’s spending on private debt collection align with known government initiatives to close the tax gap. ([financialaccountant.co.uk](https://financialaccountant.co.uk/features/hmrc-tax-gap-funding-boost/?utm_source=openai)) However, the lack of corroboration from multiple independent sources and the reliance on a single source for key figures raise questions about the plausibility of the reported figures.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information about HMRC’s spending on private debt collection, citing data up to February 2026. ([malaysia.news.yahoo.com](https://malaysia.news.yahoo.com/hmrc-spending-5m-month-debt-154808901.html?utm_source=openai)) However, the reliance on a single source for critical financial figures, the inability to independently verify direct quotes, and the limited reach of the primary source raise significant concerns about the freshness, originality, and reliability of the content. These issues necessitate further verification before publication.
