Contact Us

Villars Hayward LLP
Boston House, Boston Road
Henley-on-Thames RG9 1DY

Tel: 01491 411077   Fax: 01491 410199

Return to Latest News

 

 

 

 

 


 

Tax reclamation powers increased

 

Debt recovery powers for HM Revenue & Customs (HMRC) are set to allow up to £17,000 in unpaid tax to be taken directly from salaries.

 

Currently, HMRC is able to take back up to £3,000 worth of debt from a debtor’s pay packet.

 

The £14,000 rise has prompted strong reactions, particularly from high-earners whom this new measure will affect most of all. Those earning less than £30,000 per year will only be subject to the original £3,000 reclamation limit, while a sliding scale means those earning over £90,000 will face the new £17,000 limit.

 

Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants (ACCA), said: ‘This is another creeping of HMRC’s powers which are skewed in favour of themselves and away from the taxpayers. HMRC is becoming a more confrontational and all-powerful organisation’.

 

The new measure is hoped to raise £115 million for the treasury.