The Newshound

Labour's taxman is to be handed powers to take cash straight from bank accounts to claw back £4bn in unpaid tax

Labour's taxman is to be handed powers to take cash straight from bank accounts to claw back £4bn in unpaid tax

Chancellor John Healey is set to announce the measures in next week's Budget, targeting £4bn owed by 4.8 million people and businesses who each have outstanding bills of under £10,000. Under current rules, HMRC can only recover debts above £1,000 and must leave the taxpayer with at least £5,000. Officials could also recover fines and interest without going to court. The average individual's bill is just £950.

The burden of challenging any wrongful deductions would fall on taxpayers themselves.

HMRC may use credit reference agencies to check people's income and outgoings.

Unpaid tax debt more than a year old has risen from £5.3bn before the pandemic to £18.6bn.

MoreGB 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 accountLondon Evening StandardHMRC dealing with older tax debts which are harder to collect – report - London Evening StandardYorkshire PostHMRC faces increasing problem of older tax debts, says National Audit Office - Yorkshire PostDaily Mail NewsLabour's Budget will give taxman sweeping new powers to take money straight from bank accounts of people failing to payThe TimesHMRC to deduct money directly from bank accounts of tax evaders
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