The taxman will be allowed to claw back up to £250 per month from the pay packets of people who have underpaid their tax.
From April next year, the maximum HMRC can collect via PAYE will increase from £2,000 to £3,000 with maximum monthly payments rising from £157 to £250. This should be generally helpful for taxpayers as it makes it less painful to have it taken from your salary rather than writing out a cheque.
You may still pay it off in a lump sum if you telephone the number on the P800 Tax Calculation Form (sent to those who have paid too little or too much tax) if you prefer.
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