HMRC to raid bank accounts for unpaid tax
HMRC is restarting the use of direct debt recovery for individuals and businesses who choose not to pay the tax they owe despite having the means to do so. Who’s in the firing line?
Direct debt recovery (DRD) is nothing new, though its use was paused during the pandemic. It is now being relaunched to recover debts over £1,000, subject to various safeguarding rules. For example, it can only be used where the debtor has received a face-to-face visit from HMRC agents (having ignored previous correspondence), has not been identified as vulnerable, has sufficient money in the bank and still refuses to pay their debts.
Given the strict criteria it is expected that HMRC will use these powers sparingly, as it did prior to the pandemic. If you’re struggling to pay your tax bill, contact HMRC as soon as possible to ask about setting up a payment plan.
Related Topics
-
Mortgage interest: don’t miss out on unused relief!
You own a buy-to-let property and need to report your profits for 2024/25. You have a mortgage, but your calculations show that the tax reducer will exceed the rental profit. Will the excess go to waste?
-
When should you submit a protective claim to HMRC?
Your business has charged VAT on some sales but a recent tribunal decision has indicated that the goods are zero-rated according to the law. Should you submit a claim to HMRC for a rebate on your past sales?
-
Does personal use of business AI tools put tax relief at risk?
You’re self-employed and recently found a subscription service for an AI tool that can do the majority of your admin tasks. It’s so efficient that you’ve started to use it increasingly for non-business tasks too. Can you still claim tax relief?