Self assessment

HMRC are considering further changes to the coding out of debts and underpayments, as part of the department’s efforts to improve the collection of debt.

The Revenue can currently code out debts, PAYE underpayments and self assessment balancing payments of up to £3,000. The limit applies to all taxpayers within PAYE, regardless of their income. The taxman would like to make better use of coding out by allowing larger debts to be collected through PAYE from those with higher earnings. The proposed graduated scale is as follows.

'Amnesty' will offer reduced penalty of 10%

The taxpayer submitted his return at the proper time and this was acknowledged by HMRC. A payment on account for the year was also made, but this is currently held as a credit on the account because the return has been lost

Hott Joint Carvery (TC2644)

M Styles (TC2599)

A client’s 2011 self-assessment tax return was completed on the basis that a student loan had been repaid in full. This was incorrect, although the loan has since been repaid. HMRC are demanding full payment and a 15% penalty

Paul & Annette Galbraith t/a Galbraith Ceramics (TC2639)

R Fergus (TC2452)