After this weeks autumn budget, the first autumn budget for more than a decade, many are unaware of new powers given to the HMRC to raid their earnings if they are believed to be underpaying tax.
Hidden away in the back of Phillip Hammond’s budget were powers to allow the HMRC to immediately amend an employees tax code to collect additional taxes, if they are believed to be underpaying. In previous years, the HMRC had to wait until the next tax year to change an individuals tax code, but with new digital reforms being made at the HMRC, and the introduction of RTI (real time information), it is now much quicker for the HMRC to see if someone is not paying enough tax.
These new rules will come into effect in April 2019.
