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cashinmattress

Taxman Gets Power To Raid Paycheques

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Taxman gets power to raid paycheques

New powers allowing HM Revenue & Customs to deduct £2,000 a year from taxpayers' salaries to recover tax debts could cause many taxpayers financial hardship and leave other creditors out of pocket, the accountancy group UHY Hacker Young has warned.

Currently, Revenue and Customs must obtain taxpayers' consent or a court order before it can deduct money owed to it directly from taxpayers' salaries. But under the Finance Bill, expected to become law in a few weeks, it will not need a court's permission to take up to £2,000 a year through PAYE when it believes tax has been underpaid. Roy Maugham, a tax partner at UHY Hacker Young, is worried Revenue and Customs now has too many powers which could, if overused or wrongly applied, hurt many taxpayers.

"After mortgage payments, food and energy bills, a lot of taxpayers have little left over every month. What's going to stop HMRC making deductions from taxpayers' salaries that leave them unable to pay utility bills or service other creditors? Other creditors can't just deduct money from people's salaries on a whim.

"When you think of the administrative errors that led to millions in tax credits being paid incorrectly, you have to wonder whether there ought to be stronger safeguards before HMRC is granted unfettered access to taxpayers' paycheques."

Ok, fair enough that HMRC can go after your tax shortfalls, but what about when errors are made and they start taking money from people 'mistakenly'?

Too much power? Or good policy?

Edited by cashinmattress

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this sounds like giving legal powers to non legal govt organisations - this is fascist

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It isn't only HMRC there are other departments and government bodies being given the powers that before would have required a courts involvement.

Obviously the government is unhappy that it doesn't have complete control and so is sidelining the courts.

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Anybody else (PAYE) paying more NI than they would expect this year?

They haven't changed the pension opt out rebate on the sly have they?

They'll take your money and then you'll have to prove it;'s yours, where you got it from was legit etc etc

Then, after the 18month long battle to get your own money back if you win they'll give it to you, index linked to their fantasy inflation figures.

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"when it believes tax has been underpaid."

They would have taken a few K from me on the day I was moving house, seeing as the letter arrived advising I owed payment.

Thankfully it was all sorted but they can revist your tax history and decide you owe money.

HMRC would be the ones who sold all their buildings and contracts to a company who understood tax, so moved offshore the next day.

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Anybody else (PAYE) paying more NI than they would expect this year?

They haven't changed the pension opt out rebate on the sly have they?

My NI seems to have risen.

I have a recollection of reading somewhere that they raised it again. Looks like the top rate of income tax next year may be 75% rather than the 74% we all thought. And the current marginal rate is 45-55% for anyone on somewhere-below-minimum-wage and upwards.

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They'll take your money and then you'll have to prove it;'s yours, where you got it from was legit etc etc

Then, after the 18month long battle to get your own money back if you win they'll give it to you, index linked to their fantasy inflation figures.

lol, its not that much to worry about

My NI seems to have risen.

I have a recollection of reading somewhere that they raised it again. Looks like the top rate of income tax next year may be 75% rather than the 74% we all thought. And the current marginal rate is 45-55% for anyone on somewhere-below-minimum-wage and upwards.

double lol, I'm well below the upper earnings limit. Nominally I seem to be paying about 10% rather than 9.5% above the lower earnings limit (or whatever its called)

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Ok, fair enough that HMRC can go after your tax shortfalls, but what about when errors are made and they start taking money from people 'mistakenly'?

Too much power? Or good policy?

Hmmm. Isn't that just the slippery slope that started long ago with direct deductions like PAYE?

In principle, it seems to make as much sense as any kind of income tax. And (as now) the tax return is the place where any discrepancy is - or should be - fixed. But then again, why should HMRC have more powers than any other creditor?

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Anybody else (PAYE) paying more NI than they would expect this year?

They haven't changed the pension opt out rebate on the sly have they?

The top band has increased which means you pay more at 11% rather than 1%.

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