Direct recovery of debt powers to be extended to lower value tax debts worth up to £10,000, with direct access to bank accounts
This raises the old debate first aired back in 2015 when direct recovery of debts was introduced, legally requiring HMRC to leave a minimum balance of £5,000 across all accounts.
Now it would seem HMRC will be able to go for lower-level debt, but the consultation does not include any clarity of the lowest possible figure.
Giving HMRC powers to access small tax debts, apparently below £10,000, directly from taxpayer bank accounts ‘could leave vulnerable struggling to meet essential living costs’ warns CIOT.
The lower value tax debt consultation from HMRC sets out proposals for extending existing enforcement powers to ‘recover lower value tax debts from customers who have persistently not engaged’.
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