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Labour is set to let the taxman take cash straight from bank accounts over debts of just a FEW POUNDS

Labour is set to let the taxman take cash straight from bank accounts over debts of just a FEW POUNDS

At next week's Budget, Chancellor John Healey is expected to announce the crackdown as part of a drive to recover £4 billion. Under current rules, HMRC can only seize funds once a debt exceeds £1,000 and the taxpayer retains at least £5,000. The new powers would also allow officials to take fines and interest without going to court. Around 4.8 million individuals and businesses each owe less than £10,000, and the average personal debt stands at just £950.

HMRC wants credit reference agencies to report your income and spending.

Taxpayers wrongly hit through errors or illness would have to fight deductions themselves.

The taxman says debtors will be chased at least ten times before it raids accounts.

MoreMetroTax-dodgers will have cash automatically taken from accounts under new powersThe TelegraphHMRC to use snooping powers to raid bank accounts directlyGB NewsLabour gives taxman new powers to raid bank accounts in bid to recover £4bnThe SunNot paid your tax? HMRC to be able to take cash STRAIGHT from your bank accountDaily Mail NewsLabour's Budget will give taxman sweeping new powers to take money straight from bank accounts of people failing to pay
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