Direct Recovery of Debts, which allows HMRC to take money directly from your bank account if you have not paid your tax bill, seems likely to go ahead as planned, and our Manchester accountants can help you to make sure you know if you are likely to be affected.
Legislation now seems likely to come in the 2015 Finance Bill, allowing for an extended period of scrutiny of the plans – and the government have also strengthened the protection offered to vulnerable people affected by DRD.
For instance, they now say they will not take anybody’s money without first visiting in person, to ensure everybody has an opportunity to defend themselves, or at least is made aware that DRD is to be applied to their accounts.
Under the plans, infringing non-payers’ bank accounts can be almost drained by HMRC, leaving just £5,000 across all accounts, if they owe more than £1,000 in unpaid tax.
If you are concerned about this – and if you have substantial unpaid taxes, you would be right to be worried – our Manchester accountants can help you to get your affairs in order now, in readiness for the introduction of the legislation, once it is passed.