THE head of a leading accountancy body warned during a visit to Bradford that Government proposals to let tax officials recover arrears directly from people's bank accounts are a "car crash waiting to happen".

Michael Izza, chief executive of the Institute of Chartered Accountants in England and Wales, told local members that the body is pressing ministers to leave things be.

Speaking after the meeting at Naylor Wintersgill accountants in Bradford, Mr Izza said: "Government proposals are that they want to use new powers to recover arrears from taxpayers when we think existing powers are sufficient.

" We are in favour of taxpayers paying the right amount but this gives HMRC powers they don't need They should use existing powers more efficiently.

We are also concerned that this new power will potentially lead to mistakes being made and the possible extension into other areas of government fund recovery.

"HMRC could use it to dip into current or deposit accounts and joint accounts .

We think huge potential exists for major reputational damage to HMRC which we don't want to see.

"This is a car crash waiting to happen."

MPs on the Treasury Select Committee expressed concerns earlier this year about the proposed new HMRC powers after receiving a written submission from Frank Haskew, ICEAW head of the tax faculty .

He said that many taxpayers and accountants had serious concerns about the plans.

He said it was a fundamental tenet of English law that money could not be taken from someone's account without a judge agreeing to the move.

The Government is consulting on the plans which it aims to introduce next year . It believes the new powers would raise an additional £65 million in tax revenue, rising to more than £100 million in 2016 .

Mr Haskew warned that , based on its track record, HMRC could target the wrong people due to out-dated databases.

Under the proposals tax officials will have the power to take money from a bank account if the account holder has been asked for the money three times and only if it would leave them with at least £5,000 across all their accounts.

At present, tax officials must apply to a magistrates court or the County Court to recoup money.

HMRC estimates that £35 billion a year of money owed is unpaid.

Michael Izza also visited Provident Financial and Seabrook Crisps before attending gathering of ICEAW members hosted by Alan Wintersgill, chairman of the Bradford Society of Chartered Accountants and Victoria Wainwright, managing partner at Naylor Wintersgill accountants.