HMRC To Be Granted Powers to Recover Unpaid Taxes From Taxpayers' Bank Accounts

09 - 10 - 2015

HMRC is to be granted the power to recover unpaid tax direct from Taxpayers' bank accounts.


The power was first suggested in May 2014. The new power of Direct Recovery was confirmed in the Summer Budget with some new safeguards after much debate with Taxpayers and relevant professional advisers.


Direct Recovery will be available to HMRC for any Taxpayer who owes more than £1,000. HMRC will be required to ensure that the Taxpayer is not left with less than £5,000 in their bank account.


Additional safeguards have been included in the power of Direct Recovery which will be effective as soon as the Finance Act is granted Royal Ascent.


Every Taxpayer affected is guaranteed a face to face meeting with HMRC to discuss the debt before Direct Recovery is implemented.


The bank account funds will be frozen for 30 days before they are removed in order to allow the Taxpayer time to lodge an objection.


The Taxpayer will have a right to appeal to a County Court in certain circumstances.


If this affects you please contact us immediately on 01244 625 500 to discuss your options and to establish your best course of action.






Foremans LLP Umberlla
Foremans LLP