Direct Recovery of Debt (DRD)

14 October 2015

One of the key concerns to come out of consultation work on Direct Recovery of Debt (DRD) is the risk to vulnerable customers.

The CIPP Policy Team is pleased to see that the government has tabled two amendments to the DRD legislation within the Finance Bill. In brief the amendments make clear that before deciding to use its powers under DRD, HMRC must consider whether it would put debtors at a particular disadvantage because of circumstances related to their vulnerability. This supports the government's commitment to ensure vulnerable debtors are not affected by this power, and that HMRC will provide appropriate support to those who require it.

The amendments also require HMRC to provide a written confirmation (in the 'hold notice') that factors relating to vulnerability have been considered. Those factors must be set out in guidance: these are the principles/indicators that HMRC has been drafting with support from stakeholders through the Compliance Reform Forum (of which the CIPP is a member).

In our October issue of Professional in Payroll, Pensions & Reward, Policy’s Samantha Mann provides a concise overview of DRD (p36/37). Our magazine is also available to view on the CIPP website under News/Publications.

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