HMRC have new powers to combat tax avoidance which includespower to allow them to withdraw funds directly from your bank account. However, HMRC have indicated that this act should only be taken against "hard core" defaulters if they have ignored serious requests for payment. A recent case reported in the press shows how a Revenue error lead to a significant tax bill being raised against a tax payer who thought he was due a small refund. HMRC issued a £1.5 million tax bill together with £77,000 of late payment charges. Somehow the decimal point was moved when the tax was calculated. HMRC describe the tax demand as being incorrect and it was an unforgiveable error on their part. They apologised for the mistake and any distress caused. This highlights the problem of HMRC making errors in internally generated tax computations. You should always check with us that we have received a copy of any tax calculation and that we agree its accuracy.