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The Association of Taxation Technicians (ATT) has said that face-to-face meetings will now mean that the taxpayer has a direct channel of communication with a Revenue official before money may be withdrawn from their account.
Proposals to give HMRC ‘modern powers’ to collect debts owed by taxpayers who are be able to pay but choose to delay were announced by the Chancellor earlier this year (DRD). The ATT - and other bodies - expressed particular concern that taxpayers would be subject to having their bank accounts raided by the Revenue before being given the chance to clarify their position and explain their case, as well as pointing out any errors.
Rule of law
Ealier this week, HMRC announced a climb-down as it factored in further safeguards. (See: http://www.shout99.com/contractors/showarticle.pl?id=79954Guarded welcome as Government backs down on direct recovery of debt plans - Shout99, Nov 2014)
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"The original proposals further entrenched the wall between taxpayer and HMRC; taxpayers should not be afraid of the Revenue, and the ability to circumvent courts to withdraw money from accounts certainly would frighten many people. Rather, they should feel comfortable that there are sufficient safeguards that they wish to communicate with them. Such meetings will be particularly meaningful to the vulnerable, the elderly or migrants for example, who may be unfamiliar or simply overwhelmed by the obligations of our tax system.
"The proposed changes are due to be reflected in legislation after this Parliament, meaning that these highly significant measures, which must be exposed to public and professional scrutiny, will have time to be properly developed.
“Crucially, if an objection to DRD is made by the taxpayer, it will now go to internal HMRC review and, sensibly, the time limit for this has increased from 14 to 30 days. If a review is denied, the taxpayer will be allocated a further 30 days to appeal to the county court; these are sensible revisions which result in the kind of external oversight which taxpayers want.
“If money is withdrawn under DRD and it turns out the taxpayer was insolvent, HMRC intend to return the funds to the insolvent individual.
“Throughout the consultative process, we have sought to highlight the merit of engagement with professional and voluntary bodies and we are delighted to see that they will now be collaborating with HMRC to produce literature which will be sent to taxpayers advising them to get help from a tax adviser.
“These revisions are a testament to the clear tangible improvements to proposals when HMRC engages in sustained consultation with those who are in the best position to advise: the professional bodies representing the advisers and their clients who will engage with, and be affected by, such legislation.”
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Susie Hughes © Shout99 2014
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