Insights

Mike Truman, the editor of Taxation magazine, has set up an e-petition to try and influence the government’s plans to introduce direct recovery of tax debts (DRD) from taxpayers’ bank accounts in Finance Act 2015. By launching the new e-petition, Taxation is giving anyone who wishes to express opposition to the DRD proposals the ability to do so directly to the government.

As with the ‘accelerated payments’ legislation, the DRD proposals have attracted a lot of comment and criticism. HMRC is becoming more and more powerful and where will this all end? In addition to Taxation, accountancy professional bodies, including the ICAEW plus charities and other groups are objecting to the proposals.

According to the ICAEW, introducing DRD would be unconstitutional. They argue that greater safeguards to protect the majority of taxpayers need to be in place before the legislation can become effective. They have stated that HMRC should instead “go back a step and consult on better ways to tackle the problem of persistent non-payers”.

You can read the ICAEW’s detailed response about the consultation at ICAEW says a resounding “No” to the direct recovery of debts proposals.

If you have any concerns about tax payments and in particular if you think you have underpaid tax and want to make a voluntary disclosure, please get in touch with us for independent advice. Email Lesley Stalker or Anne Eager.