HMRC has triggered use of its direct recovery of debts (DRD) powers. This will allow them to recover unpaid tax directly from your bank accounts where you/your company have ignored repeated attempts to settle outstanding debts.
It will be operated in a ‘test and learn’ phase. HMRC can tell banks to pay sums directly from taxpayers’ accounts where tax debts of £1,000 or more are owed and the debtor has repeatedly refused to do so.
There are several safeguards in place before direct recovery is considered:
- The debt is established and past any appeal deadline
- Multiple contact attempts have failed
- The debtor receives a face-to-face visit from HMRC to explore options
The following link gives you all the information.
If you have any questions, please do not hesitate to contact us.
