Direct recovery of tax petition gathers steam

Taxation magazine has started an online petition against a proposal to allow HMRC to take tax owed from people’s bank accounts.

The new power is due to be introduced in the Finance Act 2015.

The petition says: “These proposals have been widely criticised [by representative bodies, charities and civil liberties groups] as poorly conceived, unworkable, and severely deficient in safeguards.

“They should not be implemented in Finance Act 2015. Instead they should be withdrawn and sufficient time given to carry out a wide-ranging consultation on the problem of deliberate non-payment and potential solutions.”

There is growing opposition to the proposal among politicians and the accountancy profession. The ICAEW also thinks the proposed power is a bad idea.

“[It] is unconstitutional and the safeguards are far from adequate: independent judicial oversight is essential,” the institute said. “HMRC should go back a step and consult on better ways to tackle the problem of persistent non-payers.”

MPs have said the proposal to recover tax debts from the bank accounts of an estimated 17,000 people went against the principle of the Magna Carta, a document in 1215, which aimed to protect citizens' rights from the king.

HMRC has said it is a fair and efficient way to collect tax owed and that there will be safeguards to protect people facing genuine hardship.

Comments
TaxTeddy's picture

Oh, a petition

TaxTeddy | | Permalink

That should make them sit up.

Making them sit up

andrew.hyde | | Permalink

Like the irony Ted.

What makes them sit up is the possibility that they won't be able to sit down (on a Commons bench) after the election.

Is this one a vote-winner?  Possibly yes, among folk on PAYE.  In effect HMRC takes their tax off them before their income gets anywhere near their bank account.  So they might be thinking, 'why shouldn't the government introduce 'pay-as-you-bank' for the self-employed and others who have to pay tax after they have received the relevant income?'

Or is it a vote-loser? My guess is that the politicos will have done their research and found that it wins more votes than it loses.  Or that it goes straight over most people's heads.

So unless you can get literally millions of signatures on a petition it's not going to amke much difference.

johnjenkins's picture

Nobody likes

johnjenkins | | Permalink

big bills and most would prefer monthly STO's or DD's. There are the courts for those that will not pay for whatever reason. The normal self-employed person will know that if this goes through then they will be the next target. So for me not a vote winner. Before they come out with these stupid ideas HMRC should sit down with normal people and discuss what can be done, but they won't because to them it is an increase of power as will be "prison for mistakes".

HMRC are becoming a law unto themselves so it really doesn't matter who gets in.

What government is going to say no to ways (they think) of bringing in more money.