HMRC have announced they are to begin taking tax debts directly from the bank accounts of individuals who owe them money*.

Direct Recovery of Debts scheme has been around since 2015 but is historically exceedingly rarely used by HMRC. From 2016 to 2018 a total of 19 payments were taken with this method.

But with greater pressure than ever on public finances, and enormous unpaid amounts owed to HMRC (£42.6bn in July 2025) I suspect we’ll see HMRC using this method more commonly. Other countries – such as Spain and USA – frequently use this method to recover tax debts.

*Thankfully, there are a large number of taxpayer safeguards in place before HMRC can dip into your bank account. The debt needs to be £1k or more, HMRC needs to leave £5k or more in the bank account, and taxpayers have the right to appeal against the removal of funds on various grounds, such as hardship.