This paper sets out the criteria HMRC will use to identify vulnerable customers in relation to Direct recovery of Debt legislation.
New powers known as Direct Recovery of Debts (DRD) allows HM Revenue and Customs (HMRC) to recover tax and tax credit debts from people and businesses directly from their bank accounts. It will affect a small number of individuals and businesses who are making an active decision not to pay, or to delay paying, the money they owe, even though they have sufficient funds in their accounts.
Customers who are identified as ‘vulnerable’ will not be considered for DRD, and will be given alternative support to help them pay the money they owe.
This paper sets out the indicators HMRC will use to identify customers as ‘vulnerable’.
Full details on DRD can be found in this HMRC Issue Briefing.