Legislation will be introduced to allow HMRC to recover tax and tax credit debts of £1,000 or more directly from taxpayer accounts, although the Government says this will be 'subject to rigorous safeguards'.
There will be consultation on the draft primary and secondary legislation and on the implementation of the measure, including safeguards to prevent hardship. Legislation will be in Finance Bill 2015.
Jason Collins, Partner at law firm Pinsent Masons, said: "HMRC will be given the power to take tax debts over £1,000 directly from personal bank accounts. No data has been supplied, but presumably those who fail to pay their debts are more likely to be on lower incomes.
"Will they also use this power to collect tax directly from the 33,000 who receive an accelerated payment demand?"
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Susie Hughes © Shout99 2014