Coding out debts deadline

05 Nov Coding out debts deadline

The coding threshold entitles taxpayers to have tax underpayments collected via their tax code, provided they are in employment or in receipt of a UK-based pension. The coding applies to certain debts such as self-assessment liabilities, tax credit overpayments and outstanding Class 2 NIC contributions. Instead of paying off debts in a lump sum, money is collected in monthly instalments over a year.

The amount of debt that can be coded out ranges from £3,000 to £17,000 based on a graduated scale. The maximum coding out allowance only applies to taxpayers with earnings exceeding £90,000.

The full breakdown is copied below:

EarningsCoding out limit
Less than £30k£3k
£30k to £39,999.99   £5k
£40k to £49,999.99£7k
£50k to £59,999.99£9k
£60k to £69,999.99£11k
£70k to £79,999.99 £13k
£80k to £89,999.99£15k
£90k or more £17k

 
Taxpayers with underpayments in the tax year 2014-15 have until 30 December 2015 (as opposed to the normal 31 January deadline for electronic returns) to file their self-assessment returns in order to have the monies collected in the 2016-17 tax year starting on 6 April 2016.

No Comments

Sorry, the comment form is closed at this time.

Share with your friends










Submit
Share with your friends










Submit