HMRC has resumed its programme allowing direct recovery of money from debtors’ bank accounts.
The Direct Recovery of Debts (DRD) policy, paused during the Covid-19 pandemic, has restarted in a ‘test and learn’ phase, the tax authority has confirmed.
DRD targets individuals and businesses who can afford to pay their debts but deliberately choose not to, HMRC said. This power enables HMRC to compel banks and building societies to transfer funds directly from a debtor’s account. It applies to debts of £1,000 or more, with safeguards against undue hardship and for vulnerable customers.
Before debts are considered for recovery through DRD, every debtor will receive a face-to-face visit from HMRC agents to personally identify the taxpayer, confirm it is their debt and discuss options to resolve it.
Safeguards include:
- action only against established debts that have passed the timetable for appeals;
- repeated failure to respond to HMRC contact;
- leaving a minimum of £5,000 in the debtor’s accounts to ensure sufficient funds remain for wages, mortgages or essential expenses.
HMRC said:
‘The vast majority of taxpayers pay their taxes in full and on time, but a minority choose not to pay, even though they have the means to do so.’
Internet link: GOV.UK
