John Healey proposes HMRC to seize funds without court approval

John Healey announced that the upcoming budget will grant HMRC the authority to pull funds from individuals' and businesses' bank accounts without first obtaining a court order. One outlet regime only permits such action on debts above £1,000 and requires the account to retain at least £5,000 after the seizure. Healey’s plan would eliminate both limits, allowing the tax authority to target any amount, even a few pounds, and to impose monthly instalments, fines and interest until the liability is cleared.

HMRC says around 4.8 million taxpayers owe less than £10,000 each, amounting to about £4 billion in total, with an average debt of £950. The agency also intends to use data from credit-reference agencies to assess what debtors can afford, having previously floated taking up to half of disposable income. A senior government source promised “rigorous” safeguards, though critics warn the change shifts the burden of proof onto taxpayers.