Taxman gets power to raid paycheques
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.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."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments