Deducting tax from income in a world of tax calculations

In the Low Incomes Tax Reform Group we have been intimately involved in the issues surrounding the 6 million PAYE tax calculations that are being issued between now and January next (including 1.4 people owing money; largely people on low incomes).

Should you have a client coming into your advice centres clutching one of these “informal” demands then could I suggest that you direct them to our website at :http://www.litrg.org.uk/news/index.cfm?id=819 where they will find all the arguments to challenge repayment of these debts.

If they have to be paid there are an infinite variety of ways in which they can be paid back. Once I get some agreement with the DWP about what the HB/CT/PC consequences are for this variety of arrangements, bearing in mind that tax is a deduction in arriving at income for the purposes of those benefits, I will post the detail in the section entitled “Paying up”.

Hope this helps.