Regulations which set out the information that deposit takers must provide to HMRC under the new Direct Recovery of Tax Debts Rules were made on 8 December 2015 and became law on
25 January 2016.
The regulations can be read here.
HMRC has published draft regulations which refer to the circumstances in which banks and building societies may pass on administrative charges to customers.
The draft legislation can be read here.
HMRC has also published new guidance on the factors it will take into account when determining whether a taxpayer is at a disadvantage for the purposes of the direct recovery regime. This is intended to provide a safeguard for vulnerable debtors. The issues HMRC will consider include, disability or long-term ill health, temporary illness and mental health conditions. HMRC must also consider personal issues such as recent bereavement, job loss or circumstances of domestic abuse.
HMRC retains a great deal of discretion when exercising its direct recovery powers and it is to be hoped that it will exercise this new power reasonably and proportionately.
HMRC’s guidance can be read here.