The Shadow Chancellor, Andrew Griffith, has attacked a reported Budget plan to let HMRC take unpaid tax from bank accounts without a court order. Fuller details, attributed to The Times, appear in PA copy published on 24 October. The Treasury and HMRC have not confirmed the plan.
Griffith objected to HMRC being able "to empty your bank account over a few hundred pounds and leave you with nothing to pay the rent". He called the scrapping of safeguards and the work with credit agencies "outrageous".
The Times reports that the measures aim to recoup about £4bn. It says 4.8 million people and companies each owe less than £10,000, and that the typical individual bill is £950. The £4bn and 4.8 million figures match the earlier Guido Fawkes report but have not been checked against an HMRC source.
According to the paper, earlier proposals suggested capping deductions at no more than half of disposable income. It says HMRC is exploring work with credit reference agencies to assess income and outgoings and set affordable instalments.
Under the existing Direct Recovery of Debts scheme, HMRC can act only on debts over £1,000 and must leave £5,000 in the account, the PA copy says. Taxpayers have 30 days to object, during which the money is frozen. Debt adviser Claire Cox notes that HMRC needs no county court judgment before enforcing.