A court challenge to HMRC's power to demand upfront payments from taxpayers worth £5.5bn is rejected despite claims that it 'breaches natural justice

HMRC has begun a £5.5bn tax grab as controversial government powers to demand that individuals pay tax upfront – before they have a chance to challenge the sum – were upheld in court today. As part of extensive new powers introduced last summer, HM Revenue & Customs can demand that individuals pay tax within 90 days, with added penalties and charges, if they are suspected of abusing legitimate tax reliefs. If a court later decides that HMRC's calculations were wrong, the money is paid back. Among the targets of the new power is anyone who has claimed tax relief against their income, such as buy-to-let landlords and investors in the creative industries, which offer generous tax breaks if you make a loss. But HMRC's legal victory today will "open the floodgates" for the Treasury to claim back billions of pounds in tax, according to experts. The Revenue put a figure of £5.5bn on the extra tax it expected to collect......Read more here