The initial proposals were tabled earlier this year and caused considerable controversy. The proposed power would allow HMRC to take established tax debts direct from someone’s bank account. While this would only happen if the person ignored a number of requests for payment, there were concerns that if the only contact was by letter then these might not have been received and more fundamentally that the power could be exercised without the involvement of a court or indeed anyone independent of HMRC. HMRC could have become judge and jury.
Friday’s announcement by the government provides a further set of safeguards in response to the concerns expressed. These include a face to face discussion before money is taken from an account, a process to identify vulnerable taxpayers such as the elderly and a right of appeal to HMRC. There is also a far more fundamental change to the original proposals and that is a right of appeal to a county court.
Paul Aplin comments:
“The absence of a right of appeal to someone independent of HMRC was at the heart of the concerns about DRD but the government has listened. Being able to appeal to the county court removes the risk that HMRC could act, as some had put it, as judge and jury. We need to see the detail in the draft legislation but this is a very major change to what was initially announced and one I welcome.”