Through your earnings or pension

HM Revenue and Customs (HMRC) can make deductions from your salary or pension for debts for:

  • Self Assessment tax
  • Class 2 National Insurance

They’ll change your tax code to do this.

If you’ve been paid too much in tax credits, HMRC can also take back the money in this way, or by making deductions from your Universal Credit payments.

How much

HMRC can take up to £3,000 if you earn less than £30,000.

If you earn more than this, HMRC can take higher amounts depending on your salary. They can take up to £17,000 if you earn £90,000 or more.

HMRC will write to you before the start of the next tax year explaining that your tax code will change.

If you do not want debt included in your tax code

You’ll need to either:

  • pay the full amount you owe
  • contact HMRC to arrange a payment plan