Policy paper
Collection of debt: coding out
This Tax Information and Impact Note explains the new measure that will increase the amount of debt which can be recovered by coding it out.
Documents
Details
HMRC currently calculates tax codes so that individuals pay the right amount of tax. Tax codes can also be used as a way to collect tax and debts due to HMRC (coding out). This measure will increase the amount of debt which can be recovered by coding it out. It will also provide a statutory limit to prevent employers deducting more than 50% of an employee’s pay.