The consultation considers how HMRC can modernise its collection of tax debts to reflect the changing nature of the economy and new business practices, and whether it could use director’s personal guarantees to ensure tax is paid, the use of security deposits and advance payment, and strengthening of the good claim rules.

HMRC wants to explore ways to encourage businesses that fail to pay tax to change their behaviour, for example, whether guarantees and types of pre-payment could be more widely used to tackle deliberate non-payment of taxes.