Policy News Journal - 2015-16

 Direct Recovery of Debts consultation outcome – 21 November 2014  Direct Recovery of Debt – further concerns published – 4 August 2014  CIPP response to the HMRC consultation on Direct Recovery of Debt - 26 July 2014

How Direct Recovery of Debts will work 7 August 2015

HMRC has published the details on how they will recover tax or tax credit debt directly from the bank and building society accounts of the small number of people who refuse to pay, and the safeguards that will be applied.

New powers known as Direct Recovery of Debts (DRD) allow HMRC to recover tax and tax credit debts from people and businesses directly from their bank accounts. It will affect a small number of individuals and businesses who are making an active decision not to pay, or to delay paying, the money they owe, even though they have sufficient funds in their accounts. Issue Briefing: Direct Recovery of Debts provides details about how the process will work in practice and the stringent safeguards that have been put in place to ensure that debtors do not suffer undue hardship once money is taken directly from their accounts and that adequate protection is in place for vulnerable customers.

DRD will be kept under review through regular communication with affected taxpayer groups. The Government has committed to an HMRC-led review of the measure after two years of operation.

Related CIPP news

Direct Recovery of Debt - 16 July 2015

 Direct Recovery of Debts consultation outcome – 21 November 2014  Direct Recovery of Debt – further concerns published – 4 August 2014  CIPP response to the HMRC consultation on Direct Recovery of Debt - 26 July 2014

Direct Recovery of Debt (DRD) 14 October 2015

One of the key concerns to come out of consultation work on Direct Recovery of Debt (DRD) is the risk to vulnerable customers.

The CIPP Policy Team is pleased to see that the government has tabled two amendments to the DRD legislation within the Finance Bill. In brief the amendments make clear that before deciding to use its powers under DRD, HMRC must consider whether it would put debtors at a particular disadvantage because of circumstances related to their vulnerability. This supports the government's commitment to ensure vulnerable debtors are not affected by this power, and that HMRC will provide appropriate support to those who require it. The amendments also require HMRC to provide a written confirmation (in the 'hold notice') that factors relating to vulnerability have been considered. Those factors must be set out in guidance: these are the principles/indicators that HMRC has been drafting with support from stakeholders through the Compliance Reform Forum (of which the CIPP is a member).

In our October issue of Professional in Payroll, Pensions & Reward, Policy’s Samantha Mann provides a concise overview of DRD (p36/37). Our magazine is also available to view on the CIPP website under News/Publications .

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CIPP Policy News Journal

25/04/2016, Page 198 of 453

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