Commentary

A4.615 Direct Recovery of Debts (DRD)—overview

Administration and compliance

A4.615 Direct Recovery of Debts (DRD)—overview

Enforcement by deduction from accounts (Direct Recovery of Debts (DRD))

A4.615 Direct Recovery of Debts (DRD)—overview

In the 2014 Budget, it was announced1 that the government would:

''modernise and strengthen HMRC's powers to recover tax and tax credit debts directly from debtors' bank and building society accounts.''

The power, which came into force on 18 November 2015, allows HMRC to recover debts due to them (including tax and tax credit debts) directly from the bank and building society accounts (including Individual Savings Accounts) of debtors2. It can only be used to recover debts of more than £1,000, and is subject to a number of statutory safeguards. Only debtors who have:

  1.  

    •     received a face-to-face visit

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