At Hart Shaw Business Recovery, in light of recent announcement by HMRC, we’re advising anyone with tax debts to take steps to get their affairs in order or they could have their bank account raided by them to recover monies owed.
Chancellor George Osborne first announced the new powers for HMRC in his March Budget, but HMRC has now clarified how this will work.
Around 17,000 people a year will have their accounts accessed by HMRC to target bank accounts to claw back unpaid tax and they will target anyone who owes more than £1,000 (although the average debt of those targeted will be £5,800).
HMRC says it will only target those who have long-term debts and have already received at least four demands for payment. It will also ensure that those targeted will be left with at £5,000 in total across all their bank accounts once HMRC has taken the money it is owed. It will also freeze the amount owed in accounts for 14 days to allow time for a debtor to pay before the money is seized.
Christopher Brown, partner at Hart Shaw Business Recovery, said: “HMRC has the power to take money from bank accounts, building society accounts and even ISAs. Although it has pledged that it will not leave anyone without any money in their account, clearly taking money in this way could cause problems with budgeting or meeting other expenses, so it has never been more important to get your tax affairs in order as soon as possible.
“If in doubt about what you owe, it is always best to seek professional advice at the earliest opportunity. As with any tax matter, it is always better to act sooner, rather than later.”
For further information, please contact Christopher Brown: 0800 068 6857 or via e-mail.
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