Consultation outcome

Direct recovery of debts

• From: HM Revenue & Customs
• Published: 6 May 2014
• Last updated: 21 November 2014 — See all updates

This consultation has concluded

Read the full outcome

Direct recovery of debts - Summary of responses

PDF, 309 KB, 27 pages

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Detail of outcome

The consultation on Direct Recovery of Debts (DRD) was published on 6 May 2014 and closed on 29 July 2014.

It set out the process and safeguards to implement the Chancellor’s announcement, at Budget 2014, that HMRC would be given the power to recover tax and tax credit debts directly from the bank and building society accounts (including Individual Savings Accounts) of debtors.

The consultation received 124 responses, from a wide range of individuals, organisations and businesses.

The government has heard the concerns voiced during the consultation and is grateful for the constructive and informative suggestions it received.

The government is introducing new safeguards to address the points raised during the consultation.

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Original consultation

Summary

Consultation about a new power which will allow HMRC to recover debts from the accounts of debtors who are able to pay what they owe but have chosen not to do so.

This consultation ran from
6 May 2014 to 11:59pm on 28 July 2014

Consultation description

Budget 2014 announced a new power (Direct Recovery of Debts) that will allow HMRC to recover tax and tax credit debts directly from debtors’ bank and building society accounts, including Individual Savings Accounts (ISAs). The consultation document outlines how this measure will work in practice. The government would like to gather views on how best to implement this policy, including which safeguards would be proportionate and balanced to ensure that debtors do not suffer undue hardship.

Who should read this

This consultation is seeking views from anyone who could be affected by these changes to debt enforcement powers. This includes institutions that take deposits, such as banks, building societies and other financial institutions. It is also seeking views from groups representing vulnerable debtors and those on low incomes, to ensure the proposed safeguards are balanced and appropriate.

Documents

Direct recovery of debts consultation document

PDF, 116 KB, 26 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Published 6 May 2014
Last updated 21 November 2014 + show all updates

1. 21 November 2014

   Published consultation responses document.

2. 6 May 2014

   First published.