HMRC will be able to dip into individuals\u2019 current accounts and savings held in cash Isas to recover tax debts from the autumn, it has been revealed.<\/p>\n
The controversial move was set out in documents published alongside this week\u2019s Budget \u2013 and extends to taking cash directly from tax shelters like individual savings accounts.<\/p>\n
The document reads: \u201cThis government will introduce legislation to modernise and strengthen HMRC\u2019s powers to recover tax and tax credit debts directly from debtors\u2019 bank and building society accounts, including funds held in cash Isas.<\/p>\n
\u201cHaving widely consulted, this measure will be subject to robust safeguards including a county court appeal process and a face-to-face visit to every debtor before they are considered for debt recovery through this measure.\u201d<\/p>\n
HMRC forecasts say that 17,000 \u201cnon-compliant individuals and businesses are likely to be affected by this measure each year\u201d.<\/p>\n
The proposals were unpopular when unveiled last year, with the Building Societies Association saying it could lead customers thinking their cash is not safe and taking out their savings, leading to a return to ‘cash under the mattress.’<\/p>\n
The Institute of Chartered Accountants also said HMRC would inevitably make errors that could have damaging consequences.<\/p>\n
Official documents from last year revealed it expects to receive \u00a3375million from the scheme between 2015 and 2019.<\/p>\n
HMRC said that it would only \u201ctake action against debtors who owe over \u00a31,000 of tax or tax credits debt\u201d.<\/p>\n
The Government department also previously said it will ensure its targets always have at least \u00a35,000 left over after any raid on their accounts.<\/p>\n
It is part of a wider move to give greater powers to HMRC. An \u00a3800million boost announced this week will be used to \u2018go after offshore trusts\u2019 and will triple the number of evaders HMRC pursues for prosecution.<\/p>\n
Small business groups warned that they were \u201cvery concerned about the implications of these proposals\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"
HMRC will be able to dip into individuals\u2019 current accounts and savings held in cash Isas to recover tax debts from the autumn, it has been revealed.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/858"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=858"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/858\/revisions"}],"predecessor-version":[{"id":859,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/858\/revisions\/859"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}