Labour is to hand the taxman powers to take cash straight from bank accounts in a bid to recover £4bn

Chancellor John Healey is set to announce in next week's Budget the removal of rules that currently restrict HMRC to seizing funds only when debts exceed £1,000 and a minimum of £5,000 remains in the account. Penalties and interest could also be recovered without any court order. Some 4.8 million individuals and businesses each owe under £10,000, amounting to roughly £4billion altogether. The typical debt for an individual stands at just £950.

HMRC is seeking access, via credit reference agencies, to financial data covering taxpayers' earnings and spending.

HMRC says debtors will be contacted at least ten times before cash is taken.

The spending watchdog says 8.2 million taxpayers owe HMRC a combined £43.8billion.

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 The TimesHMRC to deduct money directly from bank accounts of tax evaders

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