HM Revenue and Customs (HMRC) are running a pilot to test the benefits and impact of working with private sector debt collection agencies in recovering taxes.

Although many organisations, including other government departments, use debt collection agencies successfully to help them with debt recovery, this is a first for HMRC.

The agencies will take some debts across a range of taxes covering both businesses and individuals. The agencies will be involved in 'resolution work' only, and will not do any home or face to face visits or litigation work as part of the pilot.

The pilot is to run for six months.