Collection of tax
The measure
New measures to manage and enforce the payment of overdue tax have been announced for individuals and companies.
Three changes will be announced in Finance Bill 2009 to:
- Introduce agreed tax debtor payment plans;
- Allow HMRC to collect small debts through the PAYE system; and
- Provide HMRC with a new power to ask businesses to supply contact details for individual tax debtors.
Who will be affected?
Tax debtors and businesses who may be asked by HMRC to assist with collection or the provision of information.
When?
It is anticipated that agreed tax debtor payment plans will be introduced in 2011. The collection of small debts through PAYE is likely to begin from April 2012. HMRC's new information power to trace missing tax debtors will be effective once Finance Bill 2009 receives Royal Assent.
These changes are aimed at improving HMRC's collection of outstanding tax debts. It would be hoped that employers will not incur any greater administrative burden through having to provide information regarding employees, or collect tax debts via the PAYE system.
