# HMRC may gain power to seize unpaid tax directly from bank accounts

- URL: https://talkfuse.com/story/labours-budget-will-give-taxman-sweeping-new-powers-to-take-money-straight-from-bank-accounts-of-people-failing-to-pay/
- Published: 2026-10-23T20:11:37+00:00
- Updated: 2026-10-23T20:22:33+00:00
- Original publisher: Daily Mail (publisher lean: Right)
- Original article: https://www.dailymail.com/news/article-16234043/Labours-Budget-taxman-sweeping-new-powers-money-straight-bank-accounts-people-failing-pay.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
- Topics: World

## Key points

- HMRC could take unpaid tax directly from bank accounts.
- The proposed threshold may fall to a few pounds.
- Safeguards are promised amid concerns about errors.

## Summary

HMRC is expected to receive new powers in the Budget to take unpaid tax directly from people’s bank accounts without first obtaining a court order. The proposal is aimed at recovering debts from individuals and businesses who repeatedly ignore payment demands, as the Government seeks to reduce the tax gap.

Under current rules, direct deductions are limited to cases where more than £1,000 is owed and at least £5,000 would remain in the account afterwards; the new minimum could fall to a few pounds. HMRC says about 4.8 million people and businesses owe less than £10,000 each, totalling £4 billion, while the average individual debt is £950. Officials are also considering credit reference data to assess repayment capacity, but critics warn errors could affect vulnerable taxpayers; ministers say safeguards would be rigorous.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.