HMRC Resumes Direct Recovery from bank accounts
After a period of suspension during the COVID-19 pandemic, HM Revenue & Customs (HMRC) has now recommenced the practice of direct recovery of tax debts. This means that HMRC is once again able to recover outstanding tax liabilities directly from the bank and building society accounts of individuals and businesses who owe tax.
What Is Direct Recovery?
Direct recovery enables HMRC to take funds directly from debtors’ bank or building society accounts to settle unpaid tax debts. This method is generally used as a last resort, after other attempts to collect the debt have failed. HMRC must follow robust conditions including providing a 30-day window to raise objections before any money is withdrawn.
Why Has Direct Recovery Restarted?
The direct recovery process was temporarily paused during the height of the COVID-19 pandemic to provide relief to those facing financial difficulties. Following the government announcement in the 2025 Spring Statement, HMRC has now resumed this enforcement measure as part of its efforts to collect overdue tax debts.
What Should You Do If You Owe HMRC?
If you have an outstanding tax liability with HMRC, it is important to act promptly. You are strongly advised to contact HMRC as soon as possible to discuss your circumstances and explore your options. Engaging with HMRC early can help prevent enforcement action such as direct recovery from your bank accounts.
Time to Pay Arrangements
In many cases, HMRC may be willing to agree to a Time to Pay arrangement, which allows you to spread your payments over a period that you can afford. If you need assistance negotiating a payment plan or require advice on how to handle your tax debt, professional support is available.
Danielle Ford, our Head of Tax Disputes and Resolutions, is available to help you understand your options and assist with reaching an agreement with HMRC. Do not hesitate to reach out if you have concerns regarding your tax debts or the direct recovery process.
