Can Hmrc Seize Your Bank Account Without Notice And Start An Investigation?

[SpiritLady]

OK, situation is ... Ive been seeing this guy for a very short period of time and he tells me last night that HMRC have started an investigation into his business and have put a total block on his business bank account. I know HMRC have heavy powers to do such things but really, without notifying him? He has now texted me today, asking to borrow some money (£50 so no big deal) and I am now wondering/getting suspicious if this 'HMRC have blocked my bank' is some sort of scam and hes just trying to get money out of me (he knows I dont have 'much') or am I being paranoid and HMRC do actually have the powers to do this? I find it very strange that they have effectively stopped him from trading by blocking his bank account without any notice (he cant buy materials for jobs), he cant withdraw money so they are not allowing him to pay rent, buy food, bye fuel etc etc. Can HMRC do this or am I being conned??? Can anyone help please?

[Tilly2]

It all sound like a con to me. I wouldn't lend him any money.

[SirOracle]

Tread very carefully here SpiritLady is my advice.

[pixie374]

I'd be surprised if they gave notice as people would just empty their accounts. But don't do it, you obviously don't trust him enough at the moment.

[TWR]

With respect, you "Don't Lend / Borrow money to someone you hardly know" Warning Bells Is what I hear, take heed.

[aelmpvw]

he has a business account that has been blocked but not a personal account?

[SpiritLady]

No Tilly Im not lending any money lol. Been there and got taken for a mug before so ive learnt my lesson the hard way on that one :(. If this is a true set of events though, and HMRC can actually do this then I dont mind sticking around until all this blows over. Im just too old and too skeptical now lol and im wondering of this is a con too. I also think this guy may have a gambling problem! OMG what am i getting myself in too??? lol

[SpiritLady]

you guys are all thinking along the same lines as me then :). yes it is his business account that has been 'seized' not his private one (which apparently he doesnt have much money in):/

[Sycamore3House]

There would have to be a good reason that HMRC would block a business bank account. There would have been some correspondence. Also as a business person you would know when you are in or heading towards the smelly stuff. Go with your hunch.

[novalis]

A con.

[SpiritLady]

thanks everyone. you have been a help :)

[KARL]

Although HMRC is the most powerful entity in the land and this includes turning legal principles on their head (you are presumed guilty until you prove yourself innocent), your new friend would not be left unable to support himself, i.e. totally without means to live. In extremis Social Services could be approached for assistance and he can always sell off possessions for cash, even the HMRC would probably not go so far as to block/confiscate anything and everything personal when investigating a business, however serious the case might be. Unless he has no old friends or relatives who he can turn to, there must be ways and means if he needs short term assistance. Bottom line, he does not need to borrow from you.

[ladybirder]

Spirit, tell him sorry but HMRC has seized your bank account as well;-))

[Prudie]

I'm pretty sure HMRC can't freeze his account. I'd have thought the only time that could happen is if he's been legally made bankrupt. Even if I'm wrong this stinks, please don't fall for it.

[VHG]

You are being scammed.

The request for £50 will be the start of a whole list of requests for more money, to pay the rent, to buy food, to pay for this, to pay for that.

The requests will creep up to hundreds of pounds, then thousands of pounds

Ditch him now.

YOU ARE BEING SCAMMED.

I WILL SAY IT AGAIN, YOU ARE BEING SCAMMED.

[ummmm]

Before the Inland Revenue and the VAT man merged they could indeed seize accounts (it might have changed)

I worked in a pub and the VAT man/men walked in and shut it down. Told the customers to finish their drinks and leave.

[ubasses]

From the Autumn HMRC will be able to take debts from your bank account if your debt is over £1000, but even that has not happened yet.

Time to give him the boot.

[Prudie]

it's not easy to follow but it looks like HMRC can indeed freeze an account without prior warning but a company one not a personal one. They can however take unpaid duty from a personal account. So this bloke could have his business account frozen but surely that's not his only account? Whatever, get rid.

[Peter Pedant]

umm is right and the other 16 are wrong

yes they can usually on the grounds of tax evasion or fraud

You are being advised by 16 innocents who have no idea the extent to which the tax man can thro his weight around. Imprisonment for debt ( Dickens Little Dorrit and All That ) ended around 1835 xc debt to the tax man for example

however you are being scammed

no one says the tax man has closed my account on suspicion of fraud and oh can I have 5/- for a loaf of bread ...


and anyone who is being investigated by the tax man you need to keep well away from

and tehy will do all sorts of things without notice if they suspect fraud or destruction of documents. Tax raids as ummm describes occur on a daily basis

[Prudie]

PP we 16 innocents may be wrong but everyone has said it's a scam.

[Davemano]

I'll be the 17th to say that it looks like he's taking advantage of you. Put a stop to it and don't give any more no matter how much he pleads.