The HM Revenue and Customs (HMRC) has revised plans to raid bank accounts to collect tax and tax credit debts.
Known as Direct Recovery of Debts (DRD), the plans will allow HMRC to seize cash directly from the bank accounts, building society accounts and ISA accounts of debtors who owe £1000 or more in tax credits, subject to certain safeguards.
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Under the revised plans, HMRC will have to hold face-to-face meetings with debtors first before taking any money from their accounts.
The proposals will see the appeal process to be extended from 14 days to 30 days.
HMRC will also set up a specialist unit to deal with cases involving vulnerable members of society and will establish a helpline.
Additionally, it will introduce further new safeguards relating to transparency, governance, and a phased implementation of the DRD powers.
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By GlobalDataHMRC expects that DRD will apply to around 17,000 cases a year, with an average debt for those affected of £5,800.
David Gauke, financial secretary to the Treasury, said: "We already set out robust safeguards to protect vulnerable debtors in our original Direct Recovery of Debts proposals, but feedback from the consultation process told us we could do more to make sure this only catches those who are playing the system.
"We’re strengthening the guarantees we can offer taxpayers that the powers will only be used when debtors have consistently refused to talk to HMRC and settle their debts, and their use will be subject to the toughest scrutiny and oversight possible," he added.
