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.
Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in C:\inetpub\wwwroot\2025.financialreporter.co.uk\htdocs\templates\front-end\partials\article_blockquote.php on line 2
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."
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
FCA
FCA bans and fines financial adviser more than £740,000
In The Spotlight
'Turbulence in the mainstream market creates opportunities in the specialist space': Josh Knight, Glenhawk
Housing Market
Almost half of home sellers hit by broken property chains
Regulation
FCA bans and fines trio behind £35.5m investment scheme
This week's biggest stories:
FCA
FCA bans and fines financial adviser more than £740,000
In The Spotlight
'Turbulence in the mainstream market creates opportunities in the specialist space': Josh Knight, Glenhawk
Housing Market
Almost half of home sellers hit by broken property chains
Regulation
FCA bans and fines trio behind £35.5m investment scheme
CHL Mortgages
CHL enhances bridging range with AVMs and enhanced adverse credit criteria
Housing Market
July housing transactions dip 2% amid 'cautious market': HMRC
