HMRC to Raid Taxpayers Bank Accounts

The Guardian details how the government has watered down its controversial plans that were to give HMRC powers to raid taxpayers’ bank accounts in order to settle unpaid debts.  The plans were in fact ushered in to recoup tax from 17,000 debtors owing more than £1000 each.  Although aspects of the initiative have changed, the main approach is still in place though, but will only happen if you have savings of over £5000 across your bank savings account.  So HMRC will ensure £5000 is left for debtors, but this includes Isas held as cash or stocks and shares Isas, or other investments.

One of the things that HMRC tax inspectors will not be able to do though is to ask banks to hand over 12 months of data on an individuals account history, something that has been blocked by the government.

So the best position that any of us can take is to ensure that we file all tax returns in a accurate and timely fashion and that we pay any outstanding tax as soon as possible.  For information and help with tax returns, whether you’re an individual, a sole trader or have your own limited company, click here to get in touch with your local tax experts.