The BSA has submitted its response to HMRC's consultation on proposals to tackle lower value tax debts.

While the BSA supports the objective of improving debt recovery and reducing the tax gap, the response highlights significant concerns regarding the operational feasibility, implementation costs, customer impacts and regulatory risks associated with the proposed recurring deduction framework.

The BSA calls on HMRC to evaluate the recently reintroduced Direct Recovery of Debts regime, undertake a detailed cost-benefit analysis, and work with industry to develop and test a complete operating model before deciding whether to proceed.

The BSA and its members remain committed to engaging constructively with HMRC as the policy develops.

For more information please contact abigail.woodrow@bsa.org.uk.