IRRV Alert - week ending 28th November 2014
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Corporate report: Issue briefing: Direct Recovery of Debts
Corporate report
Issue briefing: Direct Recovery of Debts
This briefing explains how HMRC will recover tax or tax credit debt directly from the bank and building society accounts of the small number of people who refuse to pay, and the robust safeguards that will be applied.
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The tax we collect from individuals and businesses is vital to fund public services.
The vast majority of people pay their taxes in full and on time. Last year, we brought in £505.8 billion from about 35 million taxpayers. About 90% was paid on time but around £50 billion was not, and became a debt.
New powers known as Direct Recovery of Debts (DRD) allows HMRC to recover tax and tax credit debts from people and businesses directly from their bank accounts. It will affect a small number of individuals and businesses who are making an active decision not to pay, or to delay paying, the money they owe, even though they have sufficient funds in their accounts.