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As of April 2012 Her Majesty’s Revenue and Customs (HMRC) are going to be able to collect debts up to the value of £3,000 by amending the tax code of individuals in PAYE employment or even getting a UK pension. If you have any income tax debts or any tax credit overpayments, as of next month the HMRC will be able to use this method to collect your outstanding debts. If you have any tax credits overpayments, which are basically where you’ve been paid too much in tax credits, these will also be taken from your wage or salary. The tax codes won’t be changed during the year in an attempt to recover the debts outstanding they will just be changed and issued in time for the start of the new tax year. If you find that you are someone who is having money taken, it will show up as a coding notice adjustment and will be referred to as ‘Outstanding Debt’ and it will also have a little not e next to it just explaining what it is for; outstanding debts, overpayment on tax credits, or both. So it isn’t like they’re just going to start taking money from you, you will know about it, what it’s for and how much. The last thing anyone wants is to get their wage docked by the taxman and not know what it’s been taken for. Also, the HMRC themselves should have informed the person as and when they would be having their debts paid off and you should also have an idea that it may happen to you as the chances are that you will probably have had a letter from the HMRC in the past. If you are in need of some financial advice then there are a number of different companies out there that you can get in touch with, one of the best being Nixon Williams. Having been established since 1995, Nixon Williams are a leading accountancy company who serve freelance contractors, consultants and interim managers both in and around the UK.