What happens if HMRC freezes my bank account?
The "Sudden Block": Don't Panic, but Act Fast.
Finding your bank account frozen is one of the most stressful experiences possible. HMRC is one of the few organisations in the UK that can take money directly from your bank account without a court order in most cases.
There are two main reasons this happens:
- Direct Recovery of Debts (DRD): You owe more than £1,000 in tax, and they are taking it. This is a civil process.
- Account Freezing Order (AFO): They suspect the money is 'criminal property' or related to tax evasion. This is a criminal investigation process.
The Golden Rules:
- The £5k Rule: In civil cases (DRD), HMRC MUST leave you with at least £5,000 for living costs.
- The 30-Day Window: You have 30 days to object to a DRD notice before the money is physically moved.
- Hardship Claims: If you can't pay rent or buy food, you can force the release of funds.
Related Situations: If you have received a letter about tax you owe but your account isn't frozen yet, see our guide on HMRC nudge letters or tax investigations.
Use the tools below to check which power HMRC is using and generate your hardship application.
1 The Typical Timeline
If you take no action, this is the standard statutory process. Timescales are approximate but typical for 2026.
The Notice
HMRC sends a 'Notice of Intention' (DRD) or applies to a Magistrate (AFO). For DRD, they must have tried other methods first.
The Hold
The bank is ordered to 'hold' the funds. You can see the money in your balance, but you cannot spend it. Card payments will fail.
The Objection (DRD)
You have 30 days to tell HMRC why taking the money is wrong (e.g. debt doesn't exist) or will cause exceptional hardship.
The Deduction
If no objection is successful, the bank transfers the money to HMRC. For AFOs, the money stays frozen until the investigation ends.
2 Free Calculators & Checks
Not sure why your card was declined? Figure out if HMRC is using civil collection or criminal investigation powers.
Account Freeze Type Checker
Determine which HMRC power is being used against you.
How did you find out about the freeze?
Can't pay rent? Use this to draft a formal objection to HMRC based on exceptional hardship.
Hardship Letter Builder
HMRC must not take money if it causes "exceptional hardship". Let's draft your objection.
Check the math. HMRC must leave you at least £5,000 in your accounts. See how much they can legally take.
DRD "Protected £5,000" Calc
HMRC civil collection math.
Enter your balance and debt to see how the minimum protection rule applies to you.
HMRC moves fast. Check the strict deadlines for objecting before your money is gone for good.
DRD Appeal Timeline
HMRC's civil collection happens in strict windows. Don't miss Day 30.
Notice of Intention
Day 1HMRC sends you a letter (Notice of Intention) to use DRD. The clock starts.
Formal Objection Deadline
Day 30You must submit your objection or hardship claim. If you miss this, you lose the right to stop the hold.
Hold Period
Day 31-44The bank 'holds' the funds (you can't spend them) but HMRC hasn't taken them yet. They review your objection.
Money Released to HMRC
Day 45Unless the objection is successful, the bank pays the money to HMRC. The process is complete.
Tip: If you find out about the freeze AFTER money is taken, you can still appeal to the County Court, but it's much harder to get the cash back.
Timeline Danger Check
DRD vs AFO: The Critical Difference
It is vital to know which power is being used.
1. Direct Recovery of Debts (DRD)
- Reason: Unpaid tax over £1,000.
- Process: HMRC decides this themselves; no judge is needed.
- Right of Access: They must leave you £5,000 minimum.
- Action: Object to HMRC directly using our 'Hardship Letter' tool.
2. Account Freezing Order (AFO)
- Reason: Suspected criminal property (POCA).
- Process: HMRC/Police MUST go to a Magistrate for an order.
- Right of Access: They can freeze EVERY PENNY.
- Action: You need a criminal solicitor immediately. You must apply to the Court (not HMRC) to release funds for 'Reasonable Living Expenses'.
The 'Exceptional Hardship' Clause
HMRC is legally required to consider "exceptional hardship".
What counts?
- Eviction Risk: If the freeze means you cannot pay rent or mortgage.
- Health: If you need funds for essential medical care.
- Dependents: If you cannot provide food or heat for children or vulnerable adults.
- Business Failure: If the freeze prevents you from paying staff wages (payroll).
How to prove it: You should provide recent bank statements (showing the low balance) and copies of bills/eviction notices. Send your hardship application via "Signed For" post—do not rely on phone calls.
Summary of Options
Identify the Freeze Type
Check if you have a letter (DRD) or if it was a total surprise (AFO). You need a solicitor for AFOs immediately.
Apply for Hardship
If the freeze leaves you with less than £5,000 or unable to survive, use our 'Hardship Builder' to demand funds be released.
Check Account Minimums
Use the DRD Calculator to ensure HMRC isn't overreaching. They MUST leave you enough to survive.
Common Questions
Can they freeze my joint account?
Yes, but they can normally only take the portion that belongs to the person who owes the tax. If one person has a clean tax record, their money should be protected.
Will the bank tell me why it's frozen?
Often, the bank is banned from tellings you details (know as 'Tipping Off') if it's a criminal AFO. If it's a civil DRD, they will usually give you the HMRC reference number.
How long does a freeze last?
For a DRD, the money is moved after 30-45 days. For a criminal AFO, it can be frozen for months or even years while the investigation continues.
Can they take money from my ISA?
Yes. HMRC has the power to recover debt from ISAs and other savings accounts, though they usually go for current accounts first.
Official Sources & References
Related Situations
Other guides accurately explaining what happens next in tax & hmrc .
What happens if I don't respond to a letter from HMRC?
Ignoring HMRC is dangerous. They can 'determine' (guess) your tax bill and charge daily penalties for silence.
What happens if I'm reported to HMRC?
Being reported for tax evasion is stressful. HMRC's 'Connect' system will analyse your data. If you have undeclared income, telling them BEFORE they investigate reduces penalties significantly.
What happens if I don't file a Tax Return?
HMRC penalties are severe and automatic. A simple £100 fine can escalate to over £1,600 within 6 months due to daily penalties. Ignoring HMRC is the most expensive mistake you can make.