HMRC to recover debt from bank accounts and ISAs
In yesterday's Summer Budget, the government announced that it will introduce legislation which will allow HMRC to recover tax and tax credit debts directly from debtors' bank and building society accounts, including funds held in cash ISAs.
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The legislation was included in page 94 of the Budget document, and was not reported in George Osborne's speech.
First discussed at Budget 2014, Direct Recovery of Debts will provide HM Revenue and Customs with the ability to recover cash directly from the bank accounts, building society accounts and ISA accounts of debtors who owe the taxpayer £1,000 or more.
The government said that HMRC would only take action on those who have "established debts and have passed the timetable for appeals", and those who have repeatedly ignored attempts to make contact.
Yesterday's Budget document said:
"Having widely consulted, his measure will be subject to robust safeguards including a county court appeal process and a face-to-face visit to every debtor before they are considered for debt recovery through this
measure."
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