TaxPersonal TaxHMRC calls for direct access to late taxpayers’ accounts

HMRC calls for direct access to late taxpayers' accounts

HMRC could access accounts and freeze assets as it pushes for tax payment; it might also attempt to hold a charge over propoerties until tardy taxpayers pay up

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.

The taxman also proposes having the ability to hold a charge over a property
in lieu of tax owed, while still pursuing the debt through other means.

Grant Thornton senior tax partner Mike Warburton said the proposals for an
extension of HMRC’s powers were completely unwarranted.

‘Dick Turpin was hanged for helping himself to people’s money – HMRC wants it
to be legal. The thought that the Revenue could take the roof over your head
without a court order to sanction it is going over the top – if they have a
case, they should be able to justify it in court,’ Warburton told the

Daily
Telegraph
.

Further reading:



View the consultation here

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

3d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter