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The government is to go ahead with its controversial proposal to allow HMRC access to taxpayers’ bank and building society accounts.
The power of direct debt recovery (DRD) will allow the Revenue to take payment of tax and tax credit debts from accounts.
It will have effect from the date of royal assent of the summer Finance Bill 2015, while draft secondary legislation will be published with the bill for consultation.
The government is to go ahead with its controversial proposal to allow HMRC access to taxpayers’ bank and building society accounts.
The power of direct debt recovery (DRD) will allow the Revenue to take payment of tax and tax credit debts from accounts.
It will have effect from the date of royal assent of the summer Finance Bill 2015, while draft secondary legislation will be published with the bill for consultation.
The Enforcement by Deduction from Accounts (Information) Regulations 2015 will specify the information the tax department can demand from financial institutions by way of information notices and hold notices.
Taxation last year led a campaign against DRD, calling it a power too far and forcing the government to reconsider its plan.
HMRC expect to use the retooled version against will apply to about 11,000 cases a year. Tax officials plan intend to take action against debtors who owe at least £1,000 and will always leave a minimum aggregate of £5,000 across accounts.
