Measures to protect taxpayers from direct debt recovery

Measures to protect taxpayers from direct debt recovery

New safeguards have been announced by HMRC to protect vulnerable taxpayers from the planned system for Direct Recovery of Debts (DRD). The introduction of DRD would allow HMRC to collect money owed for tax and tax credit debts directly from the bank accounts of individuals and firms that owe £1,000 or more in tax, if they have repeatedly ignored attempts to make contact. The announcement came following a consultation which was held in May 2014. New measures to protect vulnerable taxpayers will include guaranteed face-to-face visits by HMRC officers, a County Court appeal process, and a time limit of 30 days between accounts being put on hold and money being taken by HMRC, if the debtor hasn’t paid the outstanding tax. This is in addition to guarantees which had already been made, such as a minimum of £5,000 always being left in debtors’ accounts.

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