UK to Introduce Digital ID! HMRC Restarts Mandatory Debt Recovery! PM Starmer Caught in Land Trust Tax Avoidance Row
- TBA
- Sep 29
- 5 min read
HMRC to resume taking tax owed by debtors directly from their bank accounts
The UK government previously announced in its Spring Budget Statement that HMRC would reinstate the Direct Recovery of Debts (DRD) policy. Recently, HMRC confirmed that the pilot phase of this program has now officially restarted.
Under the DRD policy, for individuals and businesses with tax debts exceeding £1,000, HMRC will be permitted to recover funds directly from taxpayers’ bank accounts (including cash ISAs). The measure primarily targets those who have the means to pay but deliberately avoid settling their tax liabilities.
HMRC stressed that the vast majority of taxpayers pay their taxes on time and in full, and that only a small minority choose not to pay despite being able to. To minimize undue impact, several safeguards will be built into the DRD process, including:
It will apply only to established debts where the appeal period has expired and the taxpayer has repeatedly ignored HMRC’s attempts to contact them.
Taxpayers will still have the right to appeal if they dispute the debt amount.
When enforcing recovery, HMRC must leave at least £5,000 in the account to cover wages, mortgages, and essential living or business expenses.
Dawn Register, Partner in Tax Dispute Resolution at BDO, commented: "In the context of significant pressure on public finances, it is clear that HMRC is stepping up efforts to pursue those who can pay but won’t pay.” She advised that taxpayers facing genuine financial difficulty should proactively apply for a ‘Time to Pay’ arrangement.
The government has announced plans to introduce a digital ID system across the UK
The UK government has announced plans to introduce a digital ID system nationwide, with Prime Minister Keir Starmer stating that it will help strengthen the country’s border security.
The digital ID will serve as proof of an individual’s right to live and work in the UK. The government said the initiative aims to curb illegal immigration by making it harder for people without valid status to find employment. Announcing the plan, Starmer said: “Without a digital ID, you will not be able to work in the UK—it's that simple.”
The digital ID will be available through a dedicated application system that can be downloaded onto smartphones, similar to the NHS app or a digital bank card. It will contain information such as the holder’s residency status, name, date of birth, nationality, and photograph.
All UK citizens and legal residents will be issued a digital ID and must hold one in order to work. For students, retirees, or others without a need to work, registering for a digital ID will be optional.
Once the digital ID is officially rolled out, the National Insurance Number will no longer be the only proof of the right to work.
At present, borrowing, stealing, or using someone else’s National Insurance Number is relatively easy, which has been one of the factors fueling illegal employment. However, with the digital ID system, the use of a photograph can, to some extent, prevent multiple people from sharing the same number.
Meanwhile, ministers have ruled out making the use of a digital ID mandatory for accessing healthcare or welfare benefits.
The system, however, is being designed to integrate with certain government digital services, with the aim of simplifying application processes and reducing fraud risks.
According to the government, over time the digital ID will make it easier to apply for services such as driving licences, childcare, and welfare. It also stated that digital IDs will simplify access to tax records.
The Labour Party has said the scheme will be launched before the next general election, which by law must be held no later than August 2029. On the UK Parliament website, more than one million people have already signed a petition opposing the introduction of digital IDs.
Estonia introduced a mandatory digital ID system in 2002, allowing people to access medical records, vote, use banking services, and provide digital signatures. Australia and Denmark also have digital ID apps, which people can download and use to log into government and private services.
Globally, many other countries—including Singapore, Greece, France, China, Costa Rica, and South Korea—are also gradually implementing digital ID systems, designed to serve as a temporary verification tool when individuals are unable to provide a physical ID document.
Starmer denies putting seven-acre field in trust to avoid inheritance tax
Recently, UK Prime Minister Keir Starmer has found himself embroiled in a “inheritance tax avoidance row”, though he firmly denies ever placing a seven-acre plot of land he purchased in 1996 into a trust to avoid inheritance tax.
Reports say Starmer bought the land, located behind his parents’ home, for £20,000 and used it as an enclosure for livestock so his parents could look after the animals. Responding to the claims during a media interview, he stated clearly: “I did not do that.”
British media had earlier alleged that Starmer arranged for the land to be transferred to his parents in a way that meant its value would not be included in their estate upon death. Starmer, however, explained: “I bought the land because my parents loved donkeys. My mother was seriously ill at the time, later had to undergo an amputation, and could barely communicate. But she adored her donkeys, and I wanted her to still be able to see them.”
He added: “It was a piece of farmland worth £20,000, with only four donkeys on it. To ensure my mother could see and touch them during her final days, my father even built a small shed by the edge of the land, so her wheelchair could be brought out close to the donkeys. That’s the whole story.”
Starmer has previously told the Parliamentary Standards Commissioner that after purchasing the land, he “immediately gifted it to his parents,” though the legal title remained in his name. In 2022, he eventually sold the land, which was located in Oxted, Surrey.
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