HMRC's new briefing on their forthcoming Direct Recovery of Debts (DRD) powers fails to mention that the draft legislation now includes specific provisions in respect of payments due under the new Accelerated Payment Notice (APN) regime.

The provisions for Accelerated Payments were not mentioned in the orginal consultation on DRD, and some taxpayers who have received APNs and have failed to make Time to Pay agreements could find themselves in for a considerable shock.

DRD allows HMRC to take money directly from taxpayers' bank accounts. In order to recover tax directly from a taxpayer's bank account HMRC must ensure that certain conditions (A to C) are met. The new Finance Bill stipulates under Condition B that the debt must be:

(a) an established debt,

(b) due under section 223 of, or paragraph 6 of Schedule 32 to, FA 2014 (accelerated payment notice or partner payment notice), or

(c) the disputed tax specified in a notice under section 221(2)(b) of FA 2014 (accelerated payment of tax: notice given pending appeal).



Direct Recovery of Debts

Accelerated Payment Notices