"HM Revenue & Customs has relaunched a controversial scheme giving it the power to take money directly from people's bank accounts - including cash Isas - if they repeatedly fail to pay their tax bills. Under the Direct Recovery of Debts (DRD) programme, banks and building societies will be forced to hand over cash owed to the taxman from anyone with debts of at least £1,000. Taxpayers will be allowed to keep a minimum balance of £5,000 to cover essentials,"
"Critics have branded the powers "draconian". Dawn Register, tax dispute resolution partner at BDO, said: "Given the pressure on public finances, it's clear HMRC is determined to get tougher on those who can pay but don't pay. The relaunch of this draconian power underlines how important it is not to stick your head in the sand and ignore HMRC demands.""
HM Revenue & Customs has relaunched the Direct Recovery of Debts programme, allowing it to take money directly from bank accounts and cash ISAs of taxpayers who repeatedly fail to pay. Banks and building societies must hand over funds when debts reach at least £1,000. Taxpayers can keep a minimum balance of £5,000 to cover essentials, with other funds subject to seizure after a 30-day appeal window. The relaunch targets self-assessment taxpayers, including the self-employed, landlords and those with significant investment income. HMRC staff will visit debtors in person before any cash is removed. Campaigners warn of hardship despite Treasury safeguards.
#hmrc #direct-recovery-of-debts-drd #bank-account-seizure #tax-enforcement #self-assessment-taxpayers
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