Direct recovery of debts
Consultation about a new power which will allow HMRC to recover debts from the accounts of debtors who are able to pay what they owe but have chosen not to do so.
Budget 2014 announced a new power (Direct Recovery of Debts) that will allow HMRC to recover tax and tax credit debts directly from debtors’ bank and building society accounts, including Individual Savings Accounts (ISAs). The consultation document outlines how this measure will work in practice. The government would like to gather views on how best to implement this policy, including which safeguards would be proportionate and balanced to ensure that debtors do not suffer undue hardship.
Who should read thisThis consultation is seeking views from anyone who could be affected by these changes to debt enforcement powers. This includes institutions that take deposits, such as banks, building societies and other financial institutions. It is also seeking views from groups representing vulnerable debtors and those on low incomes, to ensure the proposed safeguards are balanced and appropriate.