direct recovery of tax debts

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.

Enforcement by deduction from accounts is unlikely to be wholly effective

The government does not plan to give itself powers to significantly alter the direct recovery of debts (DRD) rules by statutory instrument, Taxation has learned, following fears of a legal provision to enable the amendment of primary legislation.

Changes to direct recovery of debts raise questions about the power’s practicality

Tax experts have applauded the government’s decision to water down controversial plans to give HMRC extra tax debt-collection powers.

Extra safeguards and additional time for consultation on direct recovery of debts (DRD) mean the measure will be delayed until after next year’s general election.

Best of the responses to the consultation on direct recovery of debts

Direct recovery of debts would be a power too far for the taxman