Coding out small debts – HMRC briefing
HMRC have released an updated Stakeholder briefing on their approach to coding out small debts (COSD) through the PAYE code: one of the methods available to HMRC to collect straightforward debts. The maximum amount that can be coded out through the tax code is £2999.99 and at present this approach will be limited to outstanding SA and Tax Credit debts.
HMRC’s original briefing was posted on the CIOT website on 4 January 2012 and can be read at http://www.tax.org.uk/tax-policy/newsdesk/2012/Codingout_small_debts. Further information can be found in HMRC’s PAYE update 97 at http://www.tax.org.uk/tax-policy/newsdesk/2012/HMRC_PAYE_update97.
The CIOT’s response (together with other related papers) to last year’s consultation can be found at http://www.tax.org.uk/tax-policy/public-submissions/2011/CollectingDebtsthroughPAYE.
11 April 2012