Posted on November 25, 2014

The proposals by the Government to give HMRC access to an individuals bank account, if they have taxation debts, have been amended and allow an individual to appeal to an independent body.

Previously there was no right to independent appeal, which has been heavily criticised by the professional accountancy bodies.

HMRC will now have to guarantee a tax debtor receives a face to face consultation before any attempt is made to access their bank account. This should ensure the more vulnerable members of society are treated fairly and undue hardship does not occur.

BUT another controversial measure still remain in place, which is debts can be recovered from joint bank accounts.

These powers apply to tax debts of over £1000 and when the debt recovery has taken place, there must be funds left of over £5000 remaining with the tax payer.