Budget Trail Would Let HMRC Take Unpaid Tax From Bank Accounts
HMRC would be allowed to take money directly from the current and savings accounts of people who fail to pay their tax, under plans The Times reports are due in Wednesday’s Budget. The shadow chancellor, Andrew Griffith, called the move “absurd”. The Treasury declined to confirm, saying tax decisions are for the chancellor at fiscal events.
The power exists already, but narrowly: since 2015 HMRC has been able to recover debts of more than £1,000, provided at least £5,000 is left, and the threshold could reportedly fall to a few pounds for repeat non-payers. Britain’s tax debt stands at £60bn. The Association of Taxation Technicians wants safeguards first. The wider trail — a higher bank levy, VAT collected by online marketplaces — is reporting, not announcement. James Smith of ING says an early election is “under priced”, calling the eye-catching pledges “the sort of thing you do if you’re going to do an early election”.