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HMRC given “draconian” powers

New rules enabling HMRC to withdraw funds from people’s bank accounts has been labelled as “draconian” and may be subject to abuse, according to ACCA and a group of tax reform specialists.

The recent Budget announcements gave HMRC the power to seize funds from people’s bank accounts if they have debts over £1,000 in either tax credits or tax. In the papers for the Budget, it was stated that the changes would see the UK’s tax system placed on the same level as those in a number of other countries, such as the US and France.

Chas Roy-Chowdhury, the taxation head for ACCA, explained that the tax collection methods in these countries are not great examples of how things should be run, and that there have been numerous mistakes made by the taxman, according to the BBC.

It is now more important than ever for an accountant in the Wirral, and up and down the country, to ensure that all expenditures are accounted for.

A HMRC spokesman explained that safeguards would be in place, although there are no details available as yet.

The spokesman said:

“We will shortly be consulting on a new measure with appropriate safeguards to help level the playing field, and tackle those who have the means to pay but are choosing not to. These are people who have, on average, over £20,000 in their accounts but are refusing to pay their debts.”

He went on to say that this will affect only a small percentage of debtors with whom they have made contact with payment requests.

Posted by Mark
March 28, 2014

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