Business

Anger at HMRC debt recovery proposals

A prominent business lobby says the government should rethink proposals allowing HM Revenue & Customs (HMRC) to recover debts directly from the bank accounts of freelancers and small businesses.

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A prominent business lobby says the government should rethink proposals allowing HM Revenue & Customs (HMRC) to recover debts directly from the bank accounts of freelancers and small businesses.

Business

Anger at HMRC debt recovery proposals

A prominent business lobby says the government should rethink proposals allowing HM Revenue & Customs (HMRC) to recover debts directly from the bank accounts of freelancers and small businesses.

Share this article

A prominent business lobby says the government should rethink proposals allowing HM Revenue & Customs (HMRC) to recover debts directly from the bank accounts of freelancers and small businesses.

Plans, unveiled at the Budget in March, are meant to penalise people who can afford to pay tax bills but refuse or forget to do so.

They would allow inspectors to dip into bank accounts to retrieve debts if there were sufficient funds to pay.

But the Forum for Private Business (FPB) says decisions to take money should take into account important factors in the business cycle, such as 12-month debts and unexpected costs such as stock or investment opportunities.

It also says the £5,000 safety net floated by the government is too low. HMRC inspectors would not be allowed to take funds from companies with bank balances below this level.

Alexander Jackman, head of policy at the FPB, said: “Our members are unequivocal in their condemnation of tax avoidance and the tax evasion practices that have received significant coverage in the media, in particular the practices of large corporates.

“However, many of our members already feel that they are unfairly targeted by HMRC and these proposals do little to dispel this commonly held belief.

He added: “The smaller scope of their operations means many small business owners feel much more vulnerable to investigations than larger firms with more complex tax arrangements.”

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Anger at HMRC debt recovery proposals

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