As part of the Governments new budget announcement, the HMRC are to be given new powers to strengthen their Debt Collection powers as part of a drive to increase revenue for the state.
Tax evaders will now have the contents of their bank accounts seized by HM Revenue & Customs as the government is giving new powers to help combat the problem for the recovery of unpaid taxes.
The HMRC are to be given the option to recover financial assets directly from debtors bank accounts who owe more than £1,000. It is believed this course of action will only be taken for debtors who have ignored multiple requests for payment. A minimum of £5,000 will be left across all accounts including ISA’s, after the debt has been collected.
These new powers were revealed as part of this weeks budget and Chancellor George Osbourne has fulfilled his promise to give the HMRC more powers to beef up its Debt recovery processes. The new pledge will also see an increase in the usage of charging orders on properties.
“This brings the UK in line with many other tax authorities which already have the power to recover debts directly from an individuals account, such as France and the US” Osbourne said.
The new measures will also see tax credit debt recovery rates for the highest earners in the tax credit system increased resulting in earlier payment of debts.
The government will hold talks on the implementation of these new powers over the coming months.