Budget 2026: Healey grants HMRC sweeping powers to chase tax debts

John Healey has given HM Revenue and Customs (HMRC) more funding and sweeping powers to collect overdue tax from those who can clearly afford to pay but ignore repeated contact , in yet another clampdown on tax debts. The move marks a major expansion of the taxman s power and comes amid the government s push to stamp out tax evasion and recover lost revenue. The Chancellor added in his speech: I am reforming the administration of self-assessed income tax from 2029……bringing more of these taxpayers in line with the majority, so that they make smaller, more regular payments instead of facing larger bills that are harder to pay.” This comes as the Chancellor gives HMRC sweeping powers to deduct funds and interest from the current and savings accounts of businesses and individuals who fail to respond to payment demands, effective from July 2029. Under current direct recovery of debts rules, HMRC can take money directly from accounts only if the debt is over £1,000 and would l