Collection of Tax Debts via PAYE to increase to £17,000
The current £3,000 limit for the coding out of tax debts via a PAYE coding adjustment will increase to £17,000 for higher earners, from April 2015.
The measures, which propose a graduated, income related scale, mean a maximum tax debt of £17,000 can be collected via PAYE from a person with earnings of over £90,000. There is no change in the limit for those with a primary source of PAYE income of less than £30,000 a year and the coding out cannot result in a tax deduction of more than 50% of gross pay in the pay period.
The proposed graduated scale is below:
|Earnings per annum £||<30K||30-40k||40-50k||50-60K||60-70K||70-80K||80- 90K||>90K|
|Coding out limit £||3,000||5,000||7,000||9,000||11,000||13,000||15,000||17,000|