Taxman to gain powers to seize money from bank accounts
Labour's Budget would give HM Revenue and Customs sweeping new powers to take money directly from the bank accounts of people who fail to pay tax owed.
The Treasury is preparing to give HM Revenue and Customs sweeping new powers to take money directly from the bank accounts of people who fail to pay what they owe, according to the Budget plans of the Labour government.
The proposed measures would allow the taxman to reach into personal accounts to recover unpaid tax without first going through the courts, a step that would mark a significant expansion of the department's enforcement toolkit. The move is aimed at closing gaps in the collection of debts owed to the Exchequer at a time when the government is under pressure to raise revenue while keeping its fiscal rules intact.
Officials are expected to present the powers as a targeted response to people who ignore repeated demands for payment rather than as a general extension of the state's reach into household finances. Critics are likely to question how the safeguards would work in practice, particularly for those who dispute the amount claimed or who face sudden financial hardship. Any such challenge would turn on whether affected taxpayers are given enough notice and a meaningful route to contest the figure before money leaves their account.
The available source material is limited to the headline and summary of the proposal, so the precise thresholds, notice periods, appeal rights and the total sums expected to be recovered have not been confirmed. Further detail is expected when the full Budget documents are published, and it is at that point that the scope of the powers, and the protections built around them, will become clear to taxpayers and to the accountants and advisers who deal with unpaid tax on their behalf.
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