HMRC has finally bowed to intense pressure and watered down its controversial direct recovery of debt (DRD) initiative, according to a statement from the Treasury.
Announced by the chancellor at this year’s Budget, the measures allow the Revenue to raid the bank accounts of individuals who owe more than £1,000 in tax. The move attracted widespread criticism from all sides, with many detractors questioning whether the taxman’s recent record of failures meant that it was competent enough to handle these new powers.
Despite insisting that the original safeguards put in place were “robust”, Treasury minister David Gauke admitted that the government “could do more” to protect vulnerable debtors. As a result, HMRC has unveiled a series of new measures in an attempt to appease its critics. … Continue reading