The taxman could take money directly from bank accounts of people and businesses that fail to pay their tax bills under new proposals.

In HM Revenue & Customs' consultation document on payments, repayments and debt, it has proposed extending its powers to allow it to freeze assets from an account equal to the amount owed it in tax.

This amount would be paid to HMRC 'after a specific period' by the bank/building society of other attempts to collect the debt 'proved fruitless'.

The taxman argues that the current process of debt recovery, where it requires obtaining a court order to do so and can involve the seizure of goods, can prove to be an unpleasant experience.

'Taxpayers who have a County Court Judgment entered against them find their creditworthiness affected. Direct attachment could be seen as less disruptive than the other recovery methods of distraint against goods, or HMRC seeking summary action through the magistrates’ court. In addition, taxpayers whose assets were attached by HMRC would no longer face the additional costs associated with seeking a court judgment which HMRC would pass on,' said HMRC in its consultation.