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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.
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.