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HMRC will begin taking money directly from bank accounts in the government’s latest bid to crackdown on unpaid tax, it has confirmed. The Labour Party's bid means HMRC will bring back its ‘Direct Recovery of Debts’ powers.

The powers require banks and building societies to pay directly from the accounts when asked. The Low Incomes Tax Reform Group has warned: “We are seeking clarification from HMRC on the process they will undertake to identify vulnerable customers, how this class of taxpayer will be defined, and the type of support that will be provided.”

A briefing from HMRC states: “Some people experience genuine financial difficulty paying their tax. This often happens when their life is affected by a major personal event, or their business develops a problem.

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