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Taxman granted new powers to collect from high earners

Her Majesty’s Revenue & Customs has been granted new powers to collect additional taxes from high earners – and some contractors may be in the crosshairs.

The taxman has had its collection ceiling raised when it comes to collecting funds from high earners that owe HMRC money. The original cap, which was set at £3,000 per annum, has shot up to £17,000 a year.

This isn’t the first time the tax authority has received a boost to its ability to collect taxes from recalcitrant Brits; a controversial plan to allow HMRC to raid the bank accounts of private citizens was met with the kind of furore you could expect from such an announcement, and as such this new one is meeting with plenty of ire as well – something the taxman has of course dismissed as something taxpayers will welcome.

Well, I’ve got news for HMRC: I certainly wouldn’t welcome it if I was one of those individuals targeted by its new powers. The system is designed to primarily target the Pay As You Earn system though, which means not every self-employed Brit would be subject to it – but an umbrella company contractor that uses PAYE could end up getting caught in the new measure, especially if they’re a high earner, and the thought of that upsets me.

The Government says that the new increased collections cap should bring in an additional £115 million into the British economy during the 2015-16 financial year. Anyone earning in excess of £30,000 through PAYE would be susceptible to the new collection caps, which will increase incrementally until anyone earning £90,000 or more would be subject to the full amount of £17,000. The taxman will be sending out letters to anyone who might be affected by this new programme, informing them that they will be expected to remit any unpaid tax through PAYE. The first wave of letters to this effect will be sent out between January and March of next year, just in time to ruin your mood for the inception of the 2015 tax year on 6 April.

Honestly I don’t see why things like this are permitted to go on. Why is the tax authority victimising so many individual Brits when there are plenty of multinationals to go after that haven’t been paying their taxes? £115 million is a drop in the bucket in comparison. Honestly, does no one have any common sense in Westminster?

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