If your earnings are £30,000 or more, HM Revenue and Customs (HMRC) has increased the amount it can recover from your income during the tax year. It will apply a sliding scale to your Pay As You Earn (PAYE) tax code. The changes only apply to underpaid Self Assessment and Class 2 National Insurance debts and Tax Credit overpayments. The changes will be reflected in your 2015-16 tax code. HMRC will notify you before it begins collecting any debts.
In order not to have the debts included in your tax code, you will have to pay the full amount owed or contact HMRC to set up a suitable payment arrangement.
The table below shows the new sliding income scale.
|Annual PAYE earnings||Coding out limits|
|Up to £29,999.99||£3,000.00|
|£30,000.00 – £39,999.99||£5,000.00|
|£40,000.00 – £49,999.99||£7,000.00|
|£50,000.00 – £59,999.99||£9,000.00|
|£60,000.00 – £69,999.99||£11,000.00|
|£70,000.00 – £79,999.99||£13,000.00|
|£80,000.00 – £89,999.99||£15,000.00|
|£90,000.00 and above||£17,000.00|