HMRC backs down over direct recovery of debts powers

HMRC has bowed to pressure to provide additional safeguards for new plans to recover debts, including meeting all debtors face-to-face before taking action, after a consultation revealed strong criticism of proposals to take money direct from people’s bank accounts

The Direct Recovery of Debts (DRD) powers give HMRC the ability to recover cash directly from the bank accounts, building society accounts and ISA accounts of debtors who owe £1,000 or more. It is expected to bring in around £100m a year.

HMRC says it has now strengthened the safeguards to ensure vulnerable individuals do not suffer unnecessary hardship. These include guaranteed visits to debtors from an HMRC officer to meet them face-to-face, and extensions to the time allowed for appeals.

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