Posted by admin - September 30, 2015 8:12 am HMRC can now help themselves

Warning of changes to the Finance Bill

It seems little known that part of the Summer 2015 Finance Bill includes a provision giving H M Revenue and Customs the right to collect arrears directly from the taxpayers bank account!!

The debt must be for an amount greater than £1,000 and they can only take the funds as long as there remains a minimum overall balance of £5,000.

There is, of course, an appeal process through the County Court and before H M Revenue & Customs can take the money they must be certain the taxpayer is aware of the debt. HMRC will also need to ensure that they have made a face to face visit with every debtor before they can commence this procedure.

H M Revenue and Customs have advised that they will ensure they have contacted the taxpayer at least four times before pursuing this line of recovery.

So where does this leave the tax payer with other debts and now insufficient funds in their account to maintain previous agreements with those creditors?

The legislation has made various amendments to the Insolvency Act 1986 so that H M Revenue and Customs cannot put themselves in a preferential position over the other creditors.

Therefore if you have do have other debts and are facing this kind of recovery action from H M Revenue and Customs it is essential that you seek advice as soon as possible.

It is not too late to seek help even after the funds have been withdrawn.