Revenue & Customs has unveiled plans to invite private debt collectors to chase unpaid tax, reports have said.

According to reports, it is currently negotiating contracts with debt collection agencies for a nationwide six-month pilot project to speed the flow of unpaid income tax, corporate tax and VAT.

The project is expected to kick off later this year.

Latest figures suggest that the revenue is owed up to £25 billion as of March last year in outstanding tax, interest payments, penalty charges and overpaid tax credits.

But experts are warning that taxpayer confidentiality could be a big issue.

“What information are they going to give out about your or my personal tax affairs?” asked tax investigation partner at national accountant PKF, John Cassidy.

Although local tax offices often chase and collect overdue money, he argued that records were usually out of date.

But the revenue insisted that it would be responsible for the collection and management of the debts and that it would be done with care.