Corporate report

Issue Briefing: Direct Recovery of Debts

This briefing explains how HMRC will recover tax or tax credit debt directly from the bank and building society accounts of the small number of people who refuse to pay, and the safeguards that will be applied.

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The tax we collect from individuals and businesses is vital to fund public services.

The vast majority of people pay their taxes in full and on time. Last year, we brought in £517.7 billion from about 45 million taxpayers. About 90% was paid on time but around £50 billion was not, and became a debt.

New powers known as Direct Recovery of Debts (DRD) allows 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.

This page updates an earlier issue briefing published in November 2014.

Published 5 August 2015