HMRC Can Raid Bank Accounts

HMRC Can Raid Bank Accounts.

Budget 2014 included suggestions for new range of powers for HMRC, anti-abuse tax avoidance powers and even the ability for HMRC to access your personal bank accounts and take money.

These new powers are in consultation at present i.e. they are not law, but they look likely. 

The Treasury Select Committee (TSC) has raised concerns on HMRC’s ability and powers to access our bank accounts.

Proposals

If you owe tax of more than £1,000 HMRC may be given power to access your bank account and take it.

Comment

We understand that people who owe tax should pay their tax.

HMRC is already a law unto itself.  You cannot sue Her Majesty for negligence. 

Yes, you can complain and take a complaint to the Parliamentary Ombudsman to be investigated (which is what we did a number of years ago).  The Parliamentary Ombudsman agreed with us, accepted that HMRC has been negligent and caused us around £2,000 of additional work i.e. a loss to our firm.  Result:  You cannot sue Her Majesty - we do not receive compensation for errors. 

HMRC is already top of the list in the priority list of creditors i.e. who is paid first when people are in financial trouble, other creditors wait at the back of the line.  We see little need to bank account raiding powers.

These new proposals, where HMRC can simply take your money from your bank account, even if its disputed, make them “Judge, Jury and Executioner”.  There is no accountability, and even if you subsequently win your case, you will get your money back but no compensation.

The TSC is right to question any additional powers that may be given to HMRC where there is little or no accountability.