TaxPersonal TaxHMRC introduces PAYE power to collect debts

HMRC introduces PAYE power to collect debts

HMRC can now collect debts of less than £3,000 through a taxpayer's PAYE code

HMRC introduces PAYE power to collect debts

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.

Related Articles

HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

1w Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

4m Emma Smith, Managing Editor
Rangers tax case to have ‘dramatic’ consequences for football and business

Legal Rangers tax case to have ‘dramatic’ consequences for football and business

4m Emma Smith, Managing Editor
Finance Bill 2017: Corporate tax reporting requirements 'a burden'

Business Regulation Finance Bill 2017: Corporate tax reporting requirements 'a burden'

11m Stephanie Wix, Writer
PAC raises “serious concerns” about HMRC’s digital plans

Corporate Tax PAC raises “serious concerns” about HMRC’s digital plans

11m Stephanie Wix, Writer
HMRC collects record £5bn in inheritance tax

HMRC HMRC collects record £5bn in inheritance tax

4m Emma Smith, Managing Editor
The top three issues that the next government must address for accountants

Making Tax Digital The top three issues that the next government must address for accountants

5m Emma Smith, Managing Editor
HMRC cuts over 150 offices to reduce running costs

Corporate Tax HMRC cuts over 150 offices to reduce running costs

9m Stephanie Wix, Writer