HMRC could soon collect unpaid tax directly

HMRC currently pay overpayments of tax direct to the taxpayer’s bank account but from 2015 it is expected to work in reverse as well.

Any unpaid tax over £1,000 could be collected direct from the taxpayer’s bank if they fail to pay. If this initiative is approved, HMRC will be able to tap into bank accounts, building society accounts as well as ISA’s. It is understood that the tax payer would be left with a minimum of £5,000 across all their banks although the recovered funds would stay in a HMRC “holding account” for 14 days to give the tax payer the chance to make contact. It is mainly aimed at those with long-term debt and at least four demands for payment will have to have been made prior to this measure coming into play. Another big move from HMRC to tackle tax fraud!