If your earnings are less than £30,000, there’s no change to the £3,000 coding out limit. But following changes in the law, HMRC is now increasing the amount of debt that we can recover through your tax code each year if your annual earnings are £30,000 or more. To do this we will apply a sliding scale to your main PAYE income. These changes will only apply to underpaid Self Assessment and Class 2 National Insurance debts and Tax Credit overpayments. Changes will be reflected in your 2015-16 tax code and we will write to you before we collect any debts through your PAYE code from April 2015.
The sliding income scale is:
Annual PAYE earnings
Coding out limits
Up to £29,999.99
£3,000.00 £5,000.00 £7,000.00 £9,000.00 £11,000.00 £13,000.00 £15,000.00 £17,000.00
£30,000.00 – £39,999.99 £40,000.00 – £49,999.99 £50,000.00 – £59,999.99 £60,000.00 – £69,999.99 £70,000.00 – £79,999.99 £80,000.00 – £89,999.99 £90,000.00 and above
The current £3,000 coding out limit will still apply to the collection of Self Assessment balancing payments and PAYE underpayments.
If you don’t want the debts to be included in your tax code, then you will need to pay the full amount you owe or speak to us to agree a suitable payment arrangement.
First Annual Tax Summaries issued
4 November 2014
The Government have now commenced the issue to around 24 million people of their first Annual Tax Summary, which will explain:
how their income tax and National Insurance contributions have been calculated for the 2013 to 2014 tax year how this money was spent by the government. The Treasury briefing explains why tax summaries have been introduced and who will receive them, saying that: From Monday 3 November over 24 million people will start receiving their first Annual Tax Summary from HM Revenue and Customs (HMRC), which breaks down exactly how their tax is spent by the Exchequer. 8 million taxpayers who complete self-assessment returns will be able to access their tax summary online, while the 16 million PAYE taxpayers who received a tax coding notice from HMRC for 2013 to 2014 will receive their summary in the post over the next seven weeks. The summaries were first announced by Chancellor of the Exchequer George Osborne at Budget 2012 in a move to make tax more transparent and easier to understand. They will set out how much tax and National Insurance each person paid in the previous year and how it contributed to public expenditure.
New analysis of the cost of taking on your first employee
4 November 2014
CIPP Policy News Journal
08/04/2015, Page 281 of 521
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