See Budget document, paragraph 2.203 – "The government will modernise and strengthen HMRC’s powers to recover tax and tax credit debts directly from debtors’ bank and building society accounts, including ISAs. The Direct Recovery of Debts will focus on debtors who owe at least £1,000 and have been contacted multiple times by HMRC to pay. A minimum aggregate balance of £5,000 will be left across all accounts, including ISAs, after the debt is recovered. The government will consult on the implementation of this measure shortly after Budget 2014."
Have you spotted this. It's one of those rolling reforms of HMRC powers that usually come around at this time of year, and will no doubt be subject to follow-up consultation. Has anyone heard the proposal before, or have experience of existing powers in this area? If not, what are your initial reactions?