The concept of private property has vanished our financial privacy is no longer. Our transactions are scrutinized, transfers of even moderate sums by private individuals are prone to trigger red flags and investigations.
The Proposed new powers allowing HM Revenue & Customs (HMRC) to dip into individuals’ bank accounts will inevitably be rough on anyone on minimum wage. Who all ready have to find an extra £38 each week? Vulnerable people – people who are not wealthy, high earners –are set to suffer further hardships If HMRC have the arbitrary right to seize sums decided only by them, at their sole discretion and without legal process, no person ever likely to be subject to such an action – and this includes huge numbers of the self-employed – will be able to sign a contract giving a mortgage or “first charge” on a property, because HMRC will be able to seize all and any funds as they appear.
- The HMRC will have the power to take money from a bank account if the account holder has been asked for the money three times
- At present, tax officials must apply to a magistrate’s court or the County Court to recoup money.
- HMRC collected tax revenues of £470bn last year but estimates that £35bn a year of money owed is you
Patrick Stevens, tax policy director at the Chartered Institute of Taxation, said: “The concern that we certainly have is that however many safeguards there are on the ability to simply take money from somebody’s bank account, it does rely on the authority having worked out how much money should correctly be taken from it in the first place.
You have the option of moving your excess funds to an offshore account outside the UK’s jurisdiction. You can still declare the overseas income on it to keep your nose clean but the HMRC will not be able to dip into it at leisure.