‘The HMRC is Sharpening it’s Teeth’

In a consultation paper on a new power for “direct recovery of debts” (DRD) which is an administrative measure which will allow HMRC to recover tax and tax credit debts directly from debtors’ bank and building society accounts, including Isas without the need to apply to a court.

HMRC states that this is a “quicker, lower cost and less invasive” approach albeit this statement is clearly nonsensical as what could be more invasive than a government body having direct access into a citizen’s bank account without recourse to a judicial process!

The consultation says the new power will be used for debts accrued through unpaid tax, overpaid tax credits, unpaid National Insurance contributions and unpaid fines. HMRC are clearly looking to recover tax without the costs and administration incurred in the past.