View more on these topics

HMRC debt recovery proposals under attack

Plans to hand HM Revenue & Customs powers to take tax from people’s bank accounts have been fiercely criticised by accountants, lawyers and building societies. 

Direct Recovery of Debts proposals outlined as part of the Budget would allow the Revenue to go into a person’s savings and deposits and recoup tax owed without the need to gain court approval.

In response to the consultation, the City of London Law Society says the proposals are “seriously misguided”. It fears the “real potential for mistakes to be made by HMRC and the adverse consequences that will have for taxpayers”.

The CLLS says HMRC must not be allowed to use the powers without approval from the judicial system.

The Association of Chartered Certified Accountants says each time the power is used the decision should be reviewed by at least four members of staff at HMRC.

The Building Societies Association says appeals against incorrect use of the DRD would have to go through county courts or tribunals, which it describes as “an expensive and complex route for consumers, which may not be accessible to many”.

The BSA also says the £1,000 tax-owed threshold for the powers is too low, which could “catch taxpayers who are unintentionally non-compliant”. It argues stocks and shares Isas should not be included within the scope of the rules and urges further clarification from HMRC.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm