Part 6: Administration and enforcement Section 51 and Schedule 8: Enforcement by deduction from accounts Background note
The vast majority of people pay their taxes in full and on time. In 2014-15, £517 billion in revenue was paid by around 35 million taxpayers. Around 90% was paid on time but around £50 billion was not, and became a debt.
	Some people require an additional prompt or reminder to pay what they owe, and a significant number of people pay once HMRC begins to pursue the money owed. In 2014-15, HMRC made around 16 million contacts with debtors by letter, phone, text message or other means, including face-to-face visits.
	HMRC encourages people to get in touch as soon as possible if they require additional assistance with their taxes, or believe they will have difficulty paying.
	However, a very small minority of taxpayers still refuse to pay what they owe, despite having the money to do so. DRD is intended to help to level the playing field. It is a targeted measure that will affect a small number of individuals and businesses who are making an active decision to not pay, or delay paying, the money they owe – even though they have sufficient funds in their accounts.
	This measure was announced at Budget 2014. A consultation document was published on 6 May 2014. The formal consultation was open until 29 July 2014 and the government published its response on 21 November 2014. This response announced additional safeguards for debtors, in response to issues raised during the consultation. This has been legislated for in Budget 2015.
	HMRC has powers (summarised in paragraphs 53 to 55) in England, Wales and Northern Ireland to take control of certain types of goods to cover a debt, without the need to apply to court. However these powers does not apply to money held in bank and building society accounts.
	Section 61 of the Taxes Management Act 1970 (TMA) granted HMRC the power to seize and sell goods in order to settle tax debts. This is called distraint, and applied to England, Wales and Northern Ireland. It still applies to Northern Ireland, but has been superseded for England and Wales by the Tribunal, Courts and Enforcement Act 2007 (TCEA).
	TCEA updated the basis of HMRC’s powers in England and Wales, alongside wider reforms to the powers granted to other enforcement agents (HMRC, police, or court-appointed bailiffs).
	HMRC does not have direct seizure powers in Scotland; however, section 128 of the Finance Act 2008 allows HMRC to seek Summary Warrants from the Sheriff, which allow a Sheriff’s Officer to carry out diligence on HMRC's behalf. This means that they can seize goods or cash (including from bank and building society accounts) in order to settle debts owed to HMRC.