HMRC’s Direct Recovery of Debts consultation

HMRC’s consultation on the direct recovery of debts (DRD), which was announced at Budget 2014, has recently closed and HMRC are now reviewing and considering comments before implementing the new powers.

Many people are concerned about the proposals, fearing that the information used to collect debts may be out of date or inaccurate, cause undue hardship or increase the risk of fraud due to the ability to directly access bank accounts. The Government will need to ensure that all these concerns can be allayed.

Under the DRD proposals:

• HMRC would be able to collect debts direct from taxpayer's bank accounts.
• It would be able to use this power to collect debts of over £1,000 which might be made up of several smaller debts.
• It won't take money from bank accounts unless there is a balance in excess of £5,000.
• HMRC will have to be able to monitor accounts balances as well as retain taxpayer's bank details in order to make collection.

If you would like to find out more about the DRD proposal, talk to your usual Scrutton Bland contact or one of the following:

Jason Fayers
01473 267000 or 01206 838400

Sarah Gamblin
01473 267000 or 01206 838400