Annual Salary | Amount of debt HMRC can recover through PAYE |
---|---|
Up to £30,000 | £3,000 limit still applies |
£30,000 - £39,000 | £5,000 |
£40,000 - £49,000 | £7,000 |
£50,000 - £59,000 | £9,000 |
£60,000 - £69,000 | £11,000 |
£70,000 - £79,000 | £13,000 |
£80,000 - £89,000 | £15,000 |
£90,000 and above | £17,000 |
HMRC now Hitting High Earner’s Pay Packets
Tuesday 10 February 2015
![HMRC now Hitting High Earner’s Pay Packets](/assets/images/title-news.png)
HM Revenue & Customs (HMRC) has increased the amount of money it can collect from people’s salaries when their tax debts remain unpaid. This essentially means that if HMRC are unable to take money directly from a tax payer’s bank account, they now have another means. Through adjusting a tax payer’s PAYE code HMRC can now recover outstanding tax debts of up to £17,000 a year, which is an increase of £14,000. However, the amount recovered will depend on the individual in question’s salary, so what can you expect to pay?
It is thought that these changes will help those with tax debts as instead of paying the amount upfront the debt will be collected throughout the year. It is important to note that these changes will only apply to underpaid self-assessment, Class 2 National Insurance debts and tax credit overpayments. HMRC will also notify you if you are affected, before they deduct money through PAYE.
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