New powers for HM Revenue & Customs will see £2,000 a year from taxpayers’ salaries deducted to recover tax debts, in a move that accountants fear could cause taxpayers serious financial hardship and leave other creditors out of pocket.
Currently HMRC must obtain taxpayers’ consent or a court order before it can deduct money owed to it directly from their salaries via PAYE. But with changes to the Finance Bill 2009 looming, HMRC will no longer need a court’s permission to take up to £2,000 a year through PAYE when it suspects tax has been underpaid.
£2000 is a lot of money to most people, especially during this tough time. Although I do not condone tax evasion or overclaiming benefits in any shape or form, mistakes do happen, and sometimes it is hard to find blame. During these circumstances it is a families disposable income that will be taken, preventing those people spending and elongating the probelms in the high street.
Perhaps the powers that be need to consider stronger regulation before handing this power over to the HMRC.
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How soon will you update your blog? I’m interested in reading some more information on this issue.
July 6th, 2009 at 23:29