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Consultation on draft direct recovery of tax debts regulations

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HMRC is consulting until 2 September 2015 on draft regulations - The Enforcement by Deduction from Accounts (Information) Regulations, SI 2015/Draft - setting out the information deposit-takers will have to provide on receipt of either an information notice or hold notice, to enable HMRC to determine whether direct recovery of a tax debt from a taxpayer’s bank account is appropriate, under new powers contained in Schedule 8 to the Summer Finance Bill 2015. See

Meanwhile, UK tax bodies have said they were ‘encouraged’ by debt recovery safeguards, but that clearer protection is needed for the vulnerable. Debtors who dispute claims that they owe HMRC money will be able to appeal to the county court before HMRC has the right to take the money directly from their bank accounts. However there is concern that other promised safeguards do not appear on the face of the Finance Bill, making it harder to be confident that they will be enforced, specifically the government’s commitment that HMRC will only seek to recover debts in this way after a face-to-face meeting with the debtor.

Chris Jones, president of the CIOT, said: ‘HMRC need the power to collect taxes owed, but this has to be subject to the rule of law. That’s why it is right that the legislation provides for someone who disputes a debt, or who believes that a deduction from their bank account would cause “exceptional hardship”, to be able to appeal to the county court. This is the kind of external oversight we have been arguing for throughout the consultation process on this proposal.’

Issue: 1272
Categories: News , direct recovery of debts