Changes to PAYE repayments to HMRC
Did you know that the amount of tax debt or underpaid tax that HM Revenue & Customs (HMRC) can collect via PAYE if you are employed has increased from £2,000 to £3,000?
HMRC can now use this collection method for the majority of tax debts, including tax credits. If you owe tax for 2010/11 and didn't complete a tax return, then you should receive a tax calculation from HMRC. Underpayments up to £3,000 will automatically be collected through your tax code for 2012/13.
If you complete a tax return and have PAYE income, then you will have the option of having underpayments up to £3,000 collected in the same way.