Taxman wants power to seize cash from accounts

HM Revenue & Customs would snatch money from bank or building society accounts without the taxpayer's consent, it was revealed.

It claimed the powers will be used only against those who are deliberately evading paying.

Hidden in the consultation document Modernising Powers, Deterrents and Safeguards, the HMRC suggests it will seek a change in the law to allow it to avoid having to seek a court order.

The unpaid amount would be "frozen" in the account and then withdrawn if an ultimatum to pay was not met.

If the proposal were to become law, HMRC said it would seek access to taxpayers' accounts at the same stage it goes to court.

This would mean that after it has written and phoned nonpayers several times and visited their home at least once.

But last night tax experts warned many claims would be disputed. Mike Warburton, senior tax partner at accountants Grant Thornton said: "Tax bills are not always right.

"Giving it direct access to people's bank accounts means that taxpayers in dispute over the amount they owe will be denied the right to defend themselves in court."

He added: "And if the Revenue is saying that the court system is too expensive and time consuming, then it is the court system that needs sorting out, not the Revenue's powers. In my view this is a power too far."

A spokesman for HMRC said if it was awarded this power it would use it only against those refusing to pay up.

"This type of defaulter would be a chronic late payer. We do not, and will not, seek access to personal bank accounts unless all other exacting avenues of communication have failed."