- HMRC has resumed its Direct Recovery of Debts (DRD) programme, which was previously paused during the pandemic and is now in a "test and learn" phase.
- The DRD policy targets individuals and businesses who have the means to pay their tax debts but deliberately choose not to.
- It enables HMRC to directly transfer funds from debtors' bank accounts, including cash ISAs, for outstanding debts of £1,000 or more.
- Key safeguards are in place, such as ensuring a minimum of £5,000 remains in the debtor's accounts and only pursuing established debts after ignored contact attempts and appeal periods.
- Taxpayers have an automatic right to appeal if they dispute the amount owed, with experts noting HMRC's determination to collect debts while balancing support for those in genuine financial difficulty.
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HMRC to resume taking tax owed by debtors directly from their bank accounts
