HMRC gain new debt collection powers

Posted on 2014-06-17, by Montpelier

The March 2014 Budget announced new measures whereby HMRC will be able to take money directly from the taxpayers’ bank account where the overdue tax liability exceeds £1,000. We already know that the banks are required to share account information with HMRC so it would presumably be a straightforward exercise to compare bank balances with tax debts which were overdue.

Initial reaction to this proposal was one of ‘considerable concern’ as the sudden withdrawal of funds could result in essential payments not being honored or the savings of a spouse being removed to pay a tax bill which was not theirs.

Further information has now come to light which suggests that the approach will be more calculated and will only apply in certain circumstances.

The new information includes:-

This approach indicates that they are serious about adopting this strategy and so it seems likely that it will be something that we will see in 2016.

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