How Direct Recovery of Debts will work
07 August 2015
HMRC has published the details on how they will recover tax or tax credit debt directly from the bank and building society accounts of the small number of people who refuse to pay, and the safeguards that will be applied.
New powers known as Direct Recovery of Debts (DRD) allow HMRC to recover tax and tax credit debts from people and businesses directly from their bank accounts. It will affect a small number of individuals and businesses who are making an active decision not to pay, or to delay paying, the money they owe, even though they have sufficient funds in their accounts.
Issue Briefing: Direct Recovery of Debts provides details about how the process will work in practice and the stringent safeguards that have been put in place to ensure that debtors do not suffer undue hardship once money is taken directly from their accounts and that adequate protection is in place for vulnerable customers.
DRD will be kept under review through regular communication with affected taxpayer groups. The Government has committed to an HMRC-led review of the measure after two years of operation.
Related CIPP news
· Direct Recovery of Debts consultation outcome – 21 November 2014
· Direct Recovery of Debt – further concerns published – 4 August 2014
· CIPP response to the HMRC consultation on Direct Recovery of Debt - 26 July 2014