Revenue takes £2,000 from salaries to chase debts

HM Revenue and Customs will be granted new powers to take up to £2,000 out of taxpayers' salaries in order to recover debts, Contractor UK has reported.

At present, HMRC must obtain taxpayers' consent or obtain a court order before it can deduct money owed to it from PAYE.

The new powers are part of the Finance Bill 2009. Taxpayers will have to appeal in order to prevent the deduction, once instigated. Revenue could also use the legislation to quickly claw back any overpayments mistakenly made to taxpayers.

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