Labour's Budget is set to let the taxman take cash straight from bank accounts to recover £4bn in unpaid tax

Chancellor John Healey is expected to scrap rules that currently stop HMRC from seizing money unless a debt exceeds £1,000 and leaves the taxpayer with at least £5,000. Officials would gain the power to draw directly from current and savings accounts without a court order. Penalties and interest charges could also be recovered. Roughly 4.8 million individuals and businesses have individual debts below £10,000, amounting to £4 billion in total.

The typical unpaid bill for an individual stands at just £950.

Taxpayers who regard a deduction as unjustified would themselves bear the burden of challenging it.

Dan Neidle of Tax Policy Associates raised concerns about the dangers of running such a process through an automated system.

GB NewsLabour gives taxman new powers to raid bank accounts in bid to recover £4bn The SunNot paid your tax? HMRC to be able to take cash STRAIGHT from your bank account London Evening StandardHMRC dealing with older tax debts which are harder to collect – report - London Evening Standard Yorkshire PostHMRC faces increasing problem of older tax debts, says National Audit Office - Yorkshire Post Daily Mail NewsLabour's Budget will give taxman sweeping new powers to take money straight from bank accounts of people failing to pay The TimesHMRC to deduct money directly from bank accounts of tax evaders

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