If I get my taxes wrong by accident will it just raid it for the money
Concerned: If you get your tax return wrong, will HMRC be able to take outstanding debt from your account?
Rachel Rickard Straus of This is Money replied: Well might you be concerned.
Last month HMRC proposed that it should be able to take cash directly from the accounts of anyone it believes owes it tax to settle an unpaid bill.
Around 17,000 people a year would have money seized under the new powers, known as the 'direct recovery of debts'. The money could be taken from current accounts, joint accounts or tax free Isas and it is predicted debtors will typically owe 5,800.
To be targeted, someone would have to owe at least 1,000 to the tax man and must have at least 5,000 left across their accounts after the money for their tax debt has been removed.
As always, there is another side to the story. HMRC wants the power to collect unpaid tax from some 17,000 taxpayers who they accuse of deliberately dodging discount pandora the system because they know HMRC doesn't have the resources to track them down.
HMRC draws a clear distinction between this group and taxpayers who simply are unable to pay. According to Lin Homer, the organisation's chief executive, this is undisputed tax that is due, which some individuals pandora jewellery rings who are not in the PAYE system are choosing not to pay.
She claims that the cost of claiming tax is substantially increased by their almost invariably wilful failure to pay. As it stands, this measure would apply to debts over 1,000 and would not be implemented unless there is a minimum of 5,000 in the bank account.
A substantial part of the professional misgivings revolves around HMRC's record at getting things wrong. While this may be a relatively small proportion of the very large number of annual interactions that HMRC has with the taxpaying public, it could lead to a significant number of taxpayers suffering at the hands of an over zealous HMRC.
It is not uncommon for taxpayers to be sent demands either for tax that has already been paid, or that are just plain wrong; for example, requesting tax that was never due. So it is possible that an innocent error on a tax return beads pandora could result in HMRC believing that you had underpaid tax and, subsequently, helping themselves to your bank account.
The consultation period for these proposals ended on 29th July, so you will need to wait and see what provisions, if any, are incorporated into the Finance Bill 2015. An indication of these could be given in the Chancellor's Autumn Statement.
For the time being, your bank account is safe from HMRC. However, if the proposals do become law, make sure that you pay close attention to any letters you receive from HMRC. If they pursue you for money that is not in fact due, take it up with HMRC without delay.
Most watched Money videos The new Nissan Qashqai will be in the showrooms from next month Instant karma!: Thief stopped by lorry driver quick thinking Jaguar Land Rover teases the opening of its classic car tour Investing Show: Are stockmarkets too expensive? Is this the best car used advert ever? Vitara gets CGI treatment Rolls Royce showcases its bespoke capabilities in stylish car Unsettling digital safety advert will make you think twice online The world largest luxury car Machine in Singapore Footage showing the amazing evolution of the Porsche 911 Carrera Should you worry about the election and your investments? How should investors deal with the UK election result? Investing Show: John Redwood on whether Trump can deliver
Sainsbury's to buy convenience rival Nisa in 130m deal,. Daily Briefing: Possible deal as Scottish Widows in line. Jaguar Land Rover jobs drive for engineers who can create. MARKETS LIVE: FTSE up as David Davis begins Brexit talks. pandora charms cheapest price ALEX BRUMMER: Hammond must be heard 'failure to secure. Private equity giant Blackstone backs UK property by. Brexit vote fuelled 146bn betting frenzy in City amongst. Co op Bank in 'advanced talks' with investors over. Women's retailer Bonmarch suffers 40% profits fall as. Britain's holiday rental market booms as the weak pound. MIDAS SHARE TIPS UPDATE: Vital signs are improving at. A surprise surcharge AFTER you have paid it's the. Roaming may now be 'free' when you're abroad but you. 'Brexit is a lose lose proposition, harmful both to. Sainsbury's to buy convenience rival Nisa in 130m deal,. North South divide opens up in buy to let market as study.
Why am I being offered a much more measly deal to move my. We're in crisis, say firms as EU workers shun UK: New. MOST READ MONEY Previous.
Prev: pandora charms wife
Next: watch for pandora charm bracelet