HMRC RAIDS BANK ACCOUNTS WITH NEW POWERS- HMRC said it reintroduced the strategy in a “test and learn” phase

Tax inspectors have already started raiding the bank accounts of those who choose not to pay their bills, HM Revenue and Customs (HMRC) has admitted.

The taxman can claim money directly from the accounts of debtors who owe more than £1,000 under “direct recovery powers”, which were first introduced in 2015 but paused during the pandemic.

HMRC said on Monday it had reintroduced the strategy in a “test and learn” phase after being given the powers to do so by Rachel Reeves, the Chancellor, in her Spring Statement.

Tax agents will first visit a taxpayer before any money is taken from their bank account or cash ISA. They must also ensure the debtor will be left with at least £5,000 and that the timetable for appeals has passed.

A report into the efficiency of direct recovery from 2019 estimated that it had generated an additional £178m in tax revenue.

However, it was used only 19 times in two years, from April 2016 to December 2018, and raised only £361,678 for the taxman.

In August, HMRC admitted that it was using artificial intelligence to spy on taxpayers’ social media posts.