Direct Recovery of Debts: Key Information for Customers

· WOWERI

HMRC can recover tax debt directly from bank accounts. Learn how it works and what safeguards are in place.

Direct Recovery of Debts: Overview

HMRC can recover tax debt directly from customers' bank accounts if they refuse to pay. This process is called Direct Recovery of Debts.

How it Works

HMRC can require banks and building societies to pay the debt directly from the customer's account if they refuse to pay voluntarily.

Safeguards

HMRC has strict safeguards in place to ensure that Direct Recovery of Debts is fair and does not harm customers. These include:

  • Assessing the customer's financial situation to determine if they can pay the debt
  • Allowing the customer to appeal the decision to use Direct Recovery of Debts
  • Ensuring the customer has access to essential funds for living

What to do next

Consultation $150

Source: gov.uk

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