HMRC proposed debt recovery powers criticised
Leading trade organisations have criticised plans outlined by chancellor George Osborne to allow HMRC to take taxes directly from taxpayers’ bank accounts.
Under the Direct Recovery of Debts (DRD) scheme, HMRC would be granted powers to seize unpaid tax directly from individuals’ and businesses’ bank accounts without applying for court approval. HMRC has claimed that it will only target taxpayers who owe more than £1,000 and have sufficient funds to pay and still leave a minimum £5,000 buffer across all their accounts (including bank and building society accounts and ISAs).
When HMRC identifies a suitable account for DRD, it will first notify the bank or building society to freeze funds up to the value of the debt. The account holder will then be notified and will have 14 days from the date of notification to either pay by other means or object…
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