Overview

• Use of Direct Recovery of Debts applies to people and businesses owing £1,000 or more who have ignored HMRC contact and are judged able to pay.
• An HMRC agent must visit the person at home or work before any deduction to verify the debt, discuss repayment options, and assess vulnerability.
• Recoveries can be ordered from banks, building societies, and ISA providers, with at least £5,000 left across accounts after any transfer.
• Debtors can object within 30 days, HMRC will not move funds while the case is considered, and there is a right to appeal to a county court on set grounds.
• The revival follows limited past use and a Covid pause and is framed as part of efforts to narrow an estimated £46.8bn tax gap, as groups such as LITRG seek clearer protections for vulnerable customers and the DWP prepares for similar powers later this year.