Not paid your Tax? HMRC can take it straight out of your account!

HMRC will soon have the power to take money straight out of your bank account. If the HMRC think you owe any back taxes or have been overpaid tax credits of more than £1000.

The new system was announced in the budget by George Osborne. These are now going out to consultation but the Government is keen to be seen clamping down on people not paying taxes. Under the proposals, HMRC would be able to seize money from bank accounts, but only after they had contacted you several times. Thankfully HMRC won’t be able to completely empty people’s accounts.

At Fairfax our view is that of course HMRC should vigorously pursue non payers of tax, however, HMRC is a large organisation that makes mistakes and is slow to resolve these. Payment collection and allocation of those payments is something HMRC get wrong a lot. Imagine as a business owner it’s payday and you go to pay your staff and HMRC has taken the money. Not a situation I would wish on anybody.

Are HMRC an efficient enough organisation to be given such powerful weapons? I am not convinced. It just goes to show the importance of keeping on top your tax returns. If you need help or advice in getting your tax affairs in order please contact us at Fairfax, we are here to help not judge.

Gurps

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