Global Daily Tax News, UK Resumes Direct Recovery Of Tax Debts, (Oct 6, 2025)

HM Revenue and Customs has confirmed the return of the Direct Recovery of Debts (DRD) program, which was paused during the COVID-19 pandemic.

The enforcement program is intended to secure the collection of tax from taxpayers that, despite having the resources to pay and despite warnings from the tax agency, refuse to settle their tax debts.

The policy allows HMRC to recover money owed by requiring banks and building societies to pay directly from a debtor's account, and/or funds held in cash Individual Savings Accounts (ISAs). It can be used where debtors owe GBP1,000 or more, subject to safeguards for vulnerable taxpayers.

The Government announced in the Spring Statement 2025 that HMRC would resume the use of DRD for individuals and businesses who choose not to pay the tax they owe. HMRC has said it will restart the program within a preliminary "test and learn" phase.

Confirming the resumption of the program, HMRC released guidance on the safeguards, and on options for taxpayers to engage with HMRC on the payment of tax debts when taxpayers encounter financial difficulties.