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HMRC to dip into debtors’ bank accounts to recover owed tax
HM Revenue and Customs targets debtors owing £1,000 or more who can pay but avoid taxes, ensuring at least £5,000 remains for essential expenses, officials said.
- On Monday, HM Revenue and Customs restarted the Direct Recovery of Debts scheme in an experimental phase, allowing recovery directly from debtors' bank accounts and cash ISAs.
- After being shelved through the pandemic, DRD was primed for revival as the DRD power was suspended throughout the Covid-19 pandemic and the Government's spring statement signalled its reactivation.
- It applies to debts of 1,000 or more, targeting debtors who can pay but HMRC says can choose not to, after appeal deadlines and repeated contact attempts.
- HMRC will leave at least 5,000 in affected accounts to protect wages and mortgages, and taxpayers with dispute rights are advised to explore 'time to pay' options.
- Amid pressure on public finances, advisers note HMRC is determined to get tougher on those who can pay but do not, urging careful implementation to balance support and assertiveness.
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Leaning Left3Leaning Right4Center23Last UpdatedBias Distribution77% Center
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77% Center
C 77%
13%
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