28 July 2014
The CIPP has now submitted its response to HMRC's consultation on the Direct Recovery of Debt. We have compiled this response based on member response to a CIPP survey, along with anecdotal evidence received during the consultation period. Whilst many respondents agreed with the principle of addressing those debtors who can pay but refuse to pay, concerns over HMRC attitudes and processes seemed to outweigh any concerns of fair play. Much depends on the stringency and application of the safeguards along with HMRC's willingness to accept that an amount is in dispute. With reconciliation of payments against liabilities still causing problems for many PAYE taxpayers, this must be addressed as there is widespread scepticism that HMRC is still not in a position to implement this proposal for PAYE taxpayers until this fundamental issue is resolved.
Click here to view the full consultation response
Keith Gordon, a barrister, argues in a “Taxation” article that the proposed new powers are excessive. The article provides one particularly strong view on the proposal, raising concerns from a slightly different angle to the CIPP’s.
New warning about scam emails purporting to come from HMRC
28 July 2014
We have previously warned readers on several occasions of the risks associated with scam emails apparently from HMRC. A new variation has now been noticed, which PayPal users need to be aware of. The emails now seen suggest that a repayment has been sent to your PayPal account and then ask you follow a link and enter your password. These emails are labelled as coming from HM Revenue & Customs Service@paypal.co.uk , and since this email address is one which is used by PayPal the whole thing looks legitimate. Please remember that HMRC will never advise you of a tax repayment by email, or request any password information. Any messages that you believe to be a scam should be reported to email@example.com to assist the Department’s efforts to understand these issues better and to develop appropriate counteraction where possible.
Direct Recovery of Debt – further concerns published
5 August 2014
Following the end of the consultation period for HMRC’s proposal to take unpaid debts direct from bank accounts, further concerns have been published.
The CIPP response to the consultation has already been published .
The Association of Chartered Certified Accountants (ACCA) have specifically argued for payroll accounts to be excluded from the plan. They say that “drastic plans to give HMRC the power to raid businesses' and individuals' bank accounts at will to take taxes owed could leave innocent employees without wages unless safeguards are put in place to protect payroll accounts.” ACCA says that any legislation giving HMRC these bank raiding powers - officially known as direct recovery of debt (DRD) - should explicitly exclude bank accounts which are primarily used for payroll purposes, otherwise innocent employees won't get paid if HMRC raids their employers' accounts.
CIPP Policy News Journal
08/04/2015, Page 197 of 521
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