Taxman plans to raid bank accounts of overpaid

Viewing 1 post (of 1 total)
  • Author
  • #27377


    Taxman plans to raid bank accounts of overpaid

    The taxman is never a popular guy, and now he is fire over proposed plans to retake unpaid income tax direct from people’s bank accounts without their permission.

    But it emerged that under controversial new powers HHMRC will also be allowed to ‘steal’ money from low-paid families in receipt of tax credits. Nobody is left untouched, even those many struggling families who are only held to owe the Government money because of mistakes by HMRC, will still face having the cash stolen straight from their banks.

    Going on HMRC’s own figures, the proposed new plans will be used against an average of 3,000 people a year who have received too much in tax credits. These are designed to help low-paid families with children.

    News of the HMRC’s plans to use new ‘snatching’ powers against the poorest of families has come on top of mounting outrage from bankers, accountants, small businesses and civil liberties charity Liberty, over the proposal that the taxman should be able to snatch unpaid income tax direct from citizen’s bank accounts.

    This new unpopular plan, known as ‘Direct Recovery of Debt’ (in a nicer term), is set to be granted to the Treasury if a proposal by the Chancellor George Osborne goes ahead – will also be used against people paid tax credits.

    But people in receipt of these tax credits have to estimate in advance how much they will be paid, before their tax credits are calculated accordingly. If people then receive a rise in pay, or other additional finance, and do not tell HMRC straight away then they are then deemed to have been overpaid. They then have to give some of the money back. As they are by definition already on low pay, getting the money together to pay it back can be extremely difficult.

    Should the tax man be allowed to snatch the money back from people’s bank accounts with their permission? I think not!

Viewing 1 post (of 1 total)

You must be logged in to reply to this topic.