Overview

• HMRC has resumed its Direct Recovery of Debts programme, allowing it to require banks and building societies to transfer funds for tax debts of £1,000 or more, including from cash ISAs.
• Action is limited to established debts after appeal periods and repeated contact attempts, with an automatic right to appeal and at least £5,000 left in affected accounts.
• The tax authority says the measure targets people and businesses who have the means to pay but choose not to.
• The reactivation follows a Spring Statement signal and reporting that the Chancellor approved the move ahead of the Autumn Budget.
• Coverage cites £42.8bn in unpaid tax and recent investment of £630m, including about 2,400 new debt staff, as experts warn the powers are ‘draconian’ and urge use of time-to-pay options.