Issue Briefing: Direct Recovery of Debts
This briefing explains how HMRC recovers tax debt by requiring banks and building societies to pay us directly from the customer’s accounts where they refuse to pay, subject to strict safeguards.
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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, HMRC brought in £858.9 billion in taxes and about 90% was paid on time but the rest became a debt.
Direct Recovery of Debts (DRD) allows HMRC to recover tax debts from people and businesses from their bank and building society accounts. It is used when an individual or business can afford to pay what they owe but are choosing not to.
Updates to this page
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Updated due to HMRC re-starting the use of Direct Recovery of Debt (DRD) powers, including update to how vulnerable customers can access support.
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Added translation