Consultation outcome

How to improve HMRC’s collection of debt: coding out

This consultation has concluded

Download the full outcome

Detail of outcome

This document summarises the comments received, and sets out the Government’s response and next steps. Following the consultation, the Government now plans to proceed with the debt collection elements of the proposed changes, and the extension of the 50 per cent overriding coding out limit to all tax codes. Following further analysis of the potential benefits, the Government has decided not to introduce a graduated and increased limit for coding out PAYE underpayments and SA balancing payments.

Original consultation

This consultation ran from to


This consultation seeks views on the proposed legislative changes to the collection of debt using the tax code, announced at Budget 2013.


Consultation description

This consultation is relevant to people who have a PAYE underpayment, a Self Assessment (SA) balancing payment or an unpaid debt to HMRC or who represent them.

As part of its efforts to improve the collection of debt HM Revenue & Customs (HMRC) is seeking views on proposed changes to the coding out of debts and underpayments.

The Government intends to increase the coding out limit but would welcome views on the detail and implementation of the proposed changes.