Tax Debt Could Be Seized From Bank Accounts
HM Revenue and Customs has proposed that it be given the power to seize unpaid taxes directly from the non-payer’s bank account, without recourse to the court order which is currently necessary.
Around 200,000 debtors are pursued through the courts each year, an exercise which is both costly and bureaucratic, and can be used by non-payers to significantly delay paying their taxes.
Although the proposal will be subject to extensive consultation before maybe being implemented, critics have already voiced concern about the plans. There is a real danger, according to some, that giving the tax authorities this much power without external checks could lead to money being seized incorrectly with no established route of appeal.
The Revenue, however, say that such action would only be taken against those who had ‘established’ tax debts and who had ignored repeated demands for payment.
July 26th, 2007 at 8:52 pm
I worked for a company once who went bankrupt owing me a good few thousand pounds. The tax man got all of his money first and the small amount left was divided up between the rest of the creditors. I got about 5 pence in the pound back so it doesnt suprise me that the tax man can help himself to your savings.
February 4th, 2008 at 10:58 am
Barclays launches fantastic catch free ISA on the market and new simple savings accounts
With less than a month left for consumers to make the most of their current tax-free ISA savings allowance, Barclays introduces a new cash ISA paying 6.50 per cent AER interest. Customers are able to save from as little as