Overview

• Reporting this week highlights that HMRC has reactivated its Direct Recovery of Debts process after a pandemic pause.
• DRD can be used only for tax debts of £1,000 or more where repeated contact has been ignored and no valid appeal is outstanding.
• Before any withdrawal, HMRC must visit in person to verify identity, assess vulnerability, and discuss other payment options.
• If approved, HMRC must give 30 days’ notice and leave at least £5,000 untouched across all bank and building society accounts.
• The power has been used very rarely in the past—19 times up to 2018—prompting advice from commentators to check HMRC letters and arrange payments early.