Labour's Budget is to hand the taxman powers to raid bank accounts without a court order to recover £4bn

The crackdown is expected to be announced by Chancellor John Healey at next week's Budget, granting HMRC the power to draw money directly from bank accounts — both current and savings — without needing a court order. Under current rules, the taxman can only pursue debts exceeding £1,000 and must ensure the account holder retains at least £5,000. The new powers would extend to the recovery of fines and interest as well. HMRC has its sights on £4billion owed by 4.8 million individuals and businesses.

The typical individual caught in the net owes HMRC just £950.

Any deductions a taxpayer believed were wrongly made would be for that taxpayer to challenge themselves.

Credit agencies could supply HMRC with data on a person's income and outgoings to determine repayment levels.

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 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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