Chapter 1 - 4.6 - Direct Recovery

Question 1

What is the first condition that must be met for HMRC to be able to collect tax directly from the taxpayer’s bank account?

Answer 1

HMRC must issue notices to the bank, to prevent the taxpayer from withdrawing the amount due and then to require the bank to pay the amount to HMRC

Question 2

Define direct recovery

Answer 2

When HMRC are able to collect tax owed by a taxpayer directly from the taxpayer’s bank account, if the 5 conditions are met?

Question 3

What is the second condition that must be met for HMRC to be able to collect tax directly from the taxpayer’s bank account?

Answer 3

The amount due must be at least £1,000

Question 4

What is the third condition that must be met for HMRC to be able to collect tax directly from the taxpayer’s bank account?

Answer 4

There is time for the taxpayer to raise an objection

Question 5

What is the fourth condition that must be met for HMRC to be able to collect tax directly from the taxpayer’s bank account?

Answer 5

The taxpayer must be left with at least £5,000 across all bank accounts in the same name

Question 6

What is the fifth condition that must be met for HMRC to be able to collect tax directly from the taxpayer’s bank account?

Answer 6

HMRC must be satisfied that the taxpayer is not vulnerable and is aware that the sum is due