Budget gives HMRC power to raid bank accounts

**MyUserName** · 20 March 2014, 11:48

Is this definitely right? Or has the reported interpreted the text incorrectly?

If this is actually how it sounds and covers IR35 then I might well switch to an offshore bank, unless that is caught in a different way!!

**d000hg** · 20 March 2014, 11:52

They can take money once it's been decided you do have to pay it, i.e. you can't just refuse. Which is something banks can already do...

**MicrosoftBob** · 20 March 2014, 11:56

Smart move, bankrupt you before you can fight them in the courts

**Freaki Li Cuatre** · 20 March 2014, 11:57

Originally posted by d000hg View Post

They can take money once it's been decided you do have to pay it, i.e. you can't just refuse. Which is something banks can already do...

I can't remember where I read it but it was within the last couple of days and the piece said that HMRC were planning on making you pay up before appeal in the case of tax avoidance schemes. Not too much of a jump to apply the same rule to IR35 is it?

**MyUserName** · 20 March 2014, 11:58

Originally posted by d000hg View Post

They can take money once it's been decided you do have to pay it, i.e. you can't just refuse. Which is something banks can already do...

So you go to court, lose and then they can just take the money even if you want to appeal?

Initially it read like they could just take the money if they decided you owed it to them and then you had to go to court to get it back?

**d000hg** · 20 March 2014, 11:59

He said explicitly in the speech they would only be able to take money from people who "can afford it". Whether that is backed by specifics I do not know but it sounds like it is aimed at those who have amassed substantial assets and refuse to HMRC's assertions that they owe some of it in tax after avoidance schemes are deemed illegal.

**MicrosoftBob** · 20 March 2014, 11:59

Originally posted by d000hg View Post

They can take money once it's been deemed you do have to pay it, i.e. you can't just refuse. Which is something banks can already do...

Subtle difference, the don't have to prove you owe the money they just need a suspicion of doubt that you might

Very useful for the government to use against anyone threatening the establishment I'd imagine....

**OwlHoot** · 20 March 2014, 12:00

Originally posted by Freaki Li Cuatre View Post

As ever the devil's always in the detail

Budget gives HMRC power to raid bank accounts

So, if they grab the money before you appeal where does that leave you in the event that they claim you've been working within IR35?

Offshore account anyone?

The article also states "A minimum of £5,000 will be left across debtors’ accounts."

So I guess a lot of contractors round here will be breathing a sigh of relief the measure isn't likely to affect them in practice

**tractor** · 20 March 2014, 12:02

...

Originally posted by d000hg View Post

He said explicitly in the speech they would only be able to take money from people who "can afford it". Whether that is backed by specifics I do not know but it sounds like it is aimed at those who have amassed substantial assets and refuse to HMRC's assertions that they owe some of it in tax after avoidance schemes are deemed illegal.

And even though a limited company (or plc) can be used for tax avoidance , corporate structure can hardly be said to be a scheme!

Budget gives HMRC power to raid bank accounts