Key facts
- HMRC has reinstated a policy allowing direct seizure of funds from bank accounts.
- The policy has reportedly saved £13 million.
- HMRC considers the policy a strong deterrent against tax evasion.
Her Majesty's Revenue and Customs (HMRC), the UK's tax authority, has reported that a reinstated policy enabling it to directly seize funds from individuals' bank accounts has yielded significant savings. The authority claims this measure has saved £13 million. HMRC further stated that this policy serves as a strong deterrent against tax evasion or non-compliance. With soaring interest rates, officials note that this has made the system for identifying and collecting tax on interest more important.