HMRC has relaunched its Direct Recovery of Debts (DRD) scheme, allowing it to withdraw money directly from bank and building society accounts where tax debts of £1,000 or more remain unpaid.
Key Points:
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Applies only once appeal rights are exhausted and after repeated attempts to contact the taxpayer.
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HMRC must attempt a face-to-face visit before acting.
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Safeguards are in place, but risks of errors and hardship remain.
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£42.8bn is currently overdue to HMRC, and the government is investing heavily in stronger debt collection.
What This Means for You:
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Don’t ignore HMRC correspondence – early communication is critical.
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Explore Time to Pay arrangements if you are struggling with cashflow.
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Seek professional advice promptly if you receive notice of DRD action.
At Lambert Chapman, our team can help you review liabilities, negotiate with HMRC, and protect your business from sudden enforcement. Contact us today if you have concerns about HMRC’s latest debt recovery measures.
Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.