HMRC debt collectors: the agencies HMRC uses
HMRC contracts out some tax debt collection to nine named debt collection agencies: 1st Locate (LCS), Advantis Credit, Ardent Credit Services (DRS), Bluestone Credit Management, BPO Collections, BW Legal (BWL), CCS Collect, Moorcroft Debt Recovery and Pastdue Credit Solutions (PDCS). The list is published on gov.uk (last updated 17 June 2026), so a letter from any other collector claiming to act for HMRC should be treated with suspicion. These agencies will only contact you by letter, text message or phone; they will never visit your home or business, and they have no bailiff powers. They can take payment or discuss a Time to Pay arrangement, and if no agreement is reached they simply pass the case back to HMRC, which can then use its real enforcement powers. All nine are regulated by the Financial Conduct Authority. If your company cannot pay what the agency is chasing, that is the moment to take advice, before HMRC takes the case back. HMRC, gov.uk: if you do not pay your tax bill
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- How many agencies
- 9 named agencies, list published on gov.uk (updated 17 June 2026)
- How they contact you
- Letter, SMS text or phone only. Never a visit
- Their powers
- None beyond asking: no goods seizure, no court powers
- Regulation
- All are FCA regulated and follow HMRC processes
- If you cannot pay
- Case goes back to HMRC, which does have enforcement powers
At a glance
| Agency | Also known as / trading as |
|---|---|
| 1st Locate | LCS |
| Advantis Credit Ltd | Advantis |
| Ardent Credit Services | Debt & Revenue Services (DRS) |
| Bluestone Consumer Finance Limited | Bluestone Credit Management |
| BPO Collections Ltd | BPO |
| BW Legal Services Limited | BWL |
| CCS Collect | Commercial Collection Services Ltd |
| Moorcroft Debt Recovery Ltd | Moorcroft |
| Pastdue Credit Solutions Limited | PDCS |
Is the letter genuine? Check before you pay
Scammers imitate tax debt letters, so verify before paying anyone. Check the sender is on the gov.uk list above; if the name is not one of the nine, do not pay. You can also check the debt itself through your HMRC online account or by calling HMRC on a number from gov.uk, never one printed only on a suspicious letter. HMRC publishes a guide to identifying HMRC-related scams. A genuine agency will ask security questions before discussing the debt, and payments you make to it are credited to your HMRC account once cleared.
What HMRC debt collectors can and cannot do
The agencies collect payment and can discuss a Time to Pay arrangement, and that is essentially all. They cannot visit your home or workplace (HMRC states its agencies contact you only by letter, SMS or phone), cannot take control of goods, and cannot start court action in HMRC's name. That makes them very different from enforcement agents, who act under court or HMRC powers with a formal notice of enforcement, and from HMRC's own field force officers, who can visit premises. If a caller claims to be "HMRC bailiffs" from one of these agencies, something is wrong.
What happens if you do not pay the agency
Nothing dramatic happens at the agency stage itself: if you cannot pay in full or agree a plan, the agency returns the case to HMRC. The escalation risk sits with what HMRC does next, which can include taking control of goods after a £75 notice of enforcement, direct recovery from bank accounts holding £1,000 or more of the debt, county court action, or ultimately a winding-up petition. A debt collection letter is therefore a warning shot worth using: engage, or take advice if the company genuinely cannot pay. See company HMRC debt for the wider picture.
If the company cannot pay at all
An agency letter for tax the company cannot afford is usually a symptom, not the problem. Work out what is affordable with the Time to Pay affordability calculator, and if no realistic plan clears the arrears, apply the insolvency tests and speak to a Licensed Insolvency Practitioner about rescue or an orderly closure before HMRC escalates.
The numbers behind this
See the live official figures on our HMRC tax debt tracker. The debt stock HMRC is chasing, which is what its collection agencies are working through. All figures come from named official sources on our UK business distress data hub.
Common questions
Why is BPO Collections or PDCS contacting me about HMRC debt?
BPO Collections and Pastdue Credit Solutions (PDCS) are two of the nine debt collection agencies HMRC uses. HMRC passes some unpaid tax debts to them to collect. Check the debt against your HMRC online account before paying, and deal with them or HMRC directly rather than ignoring it.
Can HMRC debt collectors visit my home or business?
No. HMRC states that its debt collection agencies contact you only by letter, SMS or phone and will never visit your home or place of work. Visits come from HMRC's own officers or court-authorised enforcement agents, which is a different and more serious stage.
Can HMRC debt collectors take my goods?
No. The agencies have no powers to take control of goods; only HMRC itself or enforcement agents acting under proper authority can do that, and only after a formal notice of enforcement. If someone claiming to be a debt collector threatens to remove goods, verify who they are before engaging.
What happens if I ignore an HMRC debt collection agency?
The agency passes the case back to HMRC, and HMRC can then use its enforcement powers: taking control of goods, recovering directly from bank accounts, court action or a winding-up petition. Ignoring the agency stage wastes the cheapest opportunity to sort the debt out.
Do HMRC debt collection agencies charge fees on top of the debt?
The debt you are asked to pay is the HMRC debt. Payments made to the agency are passed to HMRC and credited to your account. If you are being asked to pay unexplained extra amounts, verify the collector against the gov.uk list before paying anything.
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