I understand that HMRC will be getting new powers via the 2009 Finance Act to collect unpaid tax through my monthly wage slip. Surely that can t be right?
Our response… At the moment HMRC can only deduct underpaid Income Tax and Capital Gains Tax or overpaid tax credits via PAYE, either with the tax payer s consent or by obtaining a court order. However, once the Finance Bill 2009 becomes law later this summer, HMRC will be able to recover all taxes through PAYE – without seeking the permission of the courts. This means that tax payers will have to go through an appeals process in order to prevent deductions. These new powers will allow HM Revenue and Customs to deduct £2,000 a year from tax payers salaries to recover tax debts this could mean the tax payer losing some 34 per cent more tax from their salary. HMRC has previously been unable to recover overpaid tax credits from taxpayers, however this legislation will mean that if tax credits are overpaid in future HMRC will be able to claw back the money very easily. Since this legislation effectively helps HMRC jump to the front of the debt collection queue, there is a worry that if mi
