HM REVENUE & CUSTOMS now has the power to collect debts of less than £3,000 by including them in a taxpayer's PAYE code.
The taxman was already able to include underpayments in tax codes, although the new power - effective this month - will now enable it to do this whether the taxpayer agrees or not.
The first PAYE coding notices to include these debts were issued between January and March this year, to make deductions from salaries or pensions in 2012/13.
HMRC will not be changing tax codes during the year to recover debts or overpayments unless it is notified of a change in circumstances.
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