Poll: Should the taxman be able to seize funds from people's accounts when they owe money?
An influential group of MPs have criticised plans to give HM Revenue and Customs (HMRC) the power to seize money directly from the bank accounts of those who owe the taxman money.
The Treasury Committee said it has "considerable concern" over Chancellor George Osborne's debt collection proposals, which it warns could result in innocent people having cash taken from them.
HMRC estimates 17,000 people a year will be affected, and says money will only be taken after four demands for payment have been ignored.
The concerns are contained in a report on this year's Budget.
The MPs say the change could be similar to the reintroduction of the discredited Crown Preference Rule by stealth, which gave HMRC priority access to assets when companies went out of business.
"The proposal to grant HMRC the power to recover money directly from taxpayers' bank accounts is of considerable concern to the committee," the report said. "The committee considers a lengthy and full consultation to be essential.
"Giving HMRC this power without some form of prior independent oversight -for example by a new ombudsman or tribunal, or through the courts - would be wholly unacceptable.
Should HM Revenue and Customs be allowed to seize funds directly from people's bank accounts when they owe money to the taxman? We want your views. Take part in our online poll.
