power too far

The government is to go ahead with its controversial proposal to allow HMRC access to taxpayers’ bank and building society accounts.

The power of direct debt recovery (DRD) will allow the Revenue to take payment of tax and tax credit debts from accounts.

It will have effect from the date of royal assent of the summer Finance Bill 2015, while draft secondary legislation will be published with the bill for consultation.

Enforcement by deduction from accounts is unlikely to be wholly effective

The government does not plan to give itself powers to significantly alter the direct recovery of debts (DRD) rules by statutory instrument, Taxation has learned, following fears of a legal provision to enable the amendment of primary legislation.

Changes to direct recovery of debts raise questions about the power’s practicality

Tax experts have applauded the government’s decision to water down controversial plans to give HMRC extra tax debt-collection powers.

Extra safeguards and additional time for consultation on direct recovery of debts (DRD) mean the measure will be delayed until after next year’s general election.

Group payments

HMRC’s guidance note GPA1 “Application for a group payment arrangement” has been revised to include new telephone numbers.

VAT special scheme

VAT information sheet 9/14: special scheme for non-EU businesses has been published. It provides information about some of the most used currency exchange rates needed by non-EU businesses that are registered for the special scheme in the UK so they can complete declarations and make payments to HMRC in sterling.

The Association of Accounting Technicians (AAT) is seeking tax experts’ views of plans to allow HMRC access to taxpayers’ bank accounts.

An online survey from the AAT aims to establish the strength of feeling among industry professionals about the controversial direct recovery of debt (DRD) proposals, against which Taxation is campaigning.