HMRC will start including debts in 2012/13 tax codes
10th January 2012
From April 2012 HMRC will be able to collect debts of less than £3,000 by including them in the taxpayer’s PAYE code. This applies to both tax debts and tax credit overpayments.
Last year HMRC began writing to affected individuals so that they would have the opportunity to arrange to pay the outstanding amount by another method. HMRC will now start including outstanding debts in PAYE codes issued from January 2012. Such amounts will be included in the code issued at the start of the tax year but will not be added to the code in-year.
HMRC advises that if your client does not want their PAYE code to be reduced to collect the debt, contact HMRC immediately you receive the coding notice. This would also apply if the amount is wrong or if the taxpayer is in hardship and needs time to pay.
Last year HMRC began writing to affected individuals so that they would have the opportunity to arrange to pay the outstanding amount by another method. HMRC will now start including outstanding debts in PAYE codes issued from January 2012. Such amounts will be included in the code issued at the start of the tax year but will not be added to the code in-year.
HMRC advises that if your client does not want their PAYE code to be reduced to collect the debt, contact HMRC immediately you receive the coding notice. This would also apply if the amount is wrong or if the taxpayer is in hardship and needs time to pay.
