HMRC under fire for plan to take tax debts straight out of public's personal bank accounts

MPs have criticised the government’s plan to allow the taxman to take tax debts straight from the public’s personal bank accounts.

16:54 09 May 2014

Chancellor George Osborne’s controversial new proposals for tax collection have come under fire. The proposed scheme of allowing the taxman to seize debt straight from the public’s personal bank accounts has prompted "considerable concern" from the Treasury Committee. 

 

The cross-party Treasury Committee released a report where they voiced out their concern. It reads: “The proposal to grant HMRC the power to recover money directly from taxpayers' bank accounts is of considerable concern to the committee. The committee considers a lengthy and full consultation to be essential.

 

“Giving HMRC this power without some form of prior independent oversight -for example by a new ombudsman or tribunal, or through the courts - would be wholly unacceptable.”

 

The committee also dismissed the claim that the plan is similar to the Department for Work and Pension's (DWP) power to collect child maintenance. 

 

The MPs said: “In those cases, DWP is acting as an intermediary between two individuals. HMRC would be acting not as an intermediary between two individuals but rather in pursuit of its own objective of bringing in revenue for the Exchequer.”

 

“This policy is highly dependent on HMRC's ability accurately to determine which taxpayers owe money and what amounts they owe, an ability not always demonstrated in the past,” the report said.

 

“Incorrectly collecting money will result in serious detriment to taxpayers."