Sunday, October 25, 2026

UK government plans sweeping bank account powers to recover unpaid tax

UK tax news
AI-generated image.

Britain’s Labour government is reportedly preparing to expand HM Revenue & Customs’ authority to recover unpaid taxes directly from personal and business bank accounts, potentially allowing deductions for debts of just a few pounds without court approval.

The proposed measures, expected to feature in next week’s Budget, aim to recover approximately £4 billion owed by 4.8 million individuals and businesses, while removing existing restrictions that generally limit direct recovery to debts exceeding £1,000 and require taxpayers to retain at least £5,000.



Bureaucrats are also considering using credit agency information to assess repayment capacity and recover outstanding penalties and interest. However, tax professionals have warned that automated deductions could unfairly penalise people affected by administrative mistakes, illness or unresolved disputes, while opposition politicians have criticised the potential removal of financial safeguards.

“The more direct and possibly automated the recovery process is, the greater the risk that innocent taxpayers get money deducted from their account before the liability question is fully resolved,” tax expert Fiona Fernie said.

Support DTNZ

DTNZ is committed to bringing Kiwis independent, not-for-profit news. We're up against the vast resources of the legacy mainstream media. Help us in the battle against them by donating today.

No login required to comment. Name, email and web site fields are optional. Please keep comments respectful, civil and constructive. Moderation times can vary from a few minutes to a few hours. Comments may also be scanned periodically by Artificial Intelligence to eliminate trolls and spam.

2 COMMENTS

  1. Everybody is broke.
    According to the Inland Revenue Department (IRD), $1.4 billion was owed from the 2025 tax year.
    Additionally, there was $48 million in unpaid tax remaining from the 2018 tax year.
    An unsavory fact that has a habit of appearing when business’s go under.

  2. The UK has pledged £25 billion in total support to Ukraine since the full-scale invasion began in February 2022.
    This total comprises £16 billion in military support and up to £5.6 billion in non-military support, including humanitarian aid and fiscal guarantees.
    The UK-Ukraine 100-Year Partnership Agreement was signed on 16 January 2025 by PM Keir Starmer and President Volodymyr Zelenskyy in Kyiv.
    It’s a legally binding treaty (plus a political declaration) that remains in force for 100 years unless either party terminates it with six months’ notice.
    For 2026, the UK’s total commitment to Ukraine is:
    £3.75 billion in military support — comprising £3 billion in direct military aid (reaffirmed by PM Andy Burnham in July 2026 “for as long as it takes”) plus £750 million through the final ERA loan instalment (paid April 2026).
    This includes a £752 million package for 150,000 drones and 350+ air defence missiles, a £500 million air defence package, and a €300 million Gripen E fighter jet commitment.
    Volodymyr Zelensky was in the UK just 10 days ago, on 14 October 2026.
    He met King Charles III at Buckingham Palace and then held talks with PM Andy Burnham at 10 Downing Street, where he was greeted by a military ceremonial guard — a first for a foreign leader.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Wellington
broken clouds
15.3 ° C
16.8 °
14.4 °
83 %
13.4kmh
75 %
Sun
19 °
Mon
17 °
Tue
14 °
Wed
15 °
Thu
15 °




Trending

Sport

Daily Life

Opinion