Overview

• HMRC has resumed its Direct Recovery of Debts in a September 'test and learn' phase after pausing the scheme during the pandemic.
• Banks and building societies must transfer funds to HMRC when conditions are met, including debts of £1,000 or more and expired appeal windows.
• Cash ISA balances can be tapped, and HMRC says vulnerable customers are protected with an automatic right to appeal.
• Safeguards require leaving at least £5,000 across affected accounts to avoid removing money needed for essential expenses.
• Some outlets report HMRC staff making unannounced visits as part of enforcement activity, a detail not framed as a new statutory power.