This website uses cookies to ensure you get the best experience. Please read our policies for more information.

10 Chartered Accountants

News

HMRC trialling self-assessment checks to help local authorities to recover council tax
03 October 2019

HM Revenue & Customs (HMRC) has announced that it is entering into data-sharing arrangements with local authorities to help clamp down on council tax debt.

In the 2017/18 tax year, councils in England had an £818 million deficit for council tax arrears, which has prompted HMRC to work with local authorities by sharing information about taxpayers.

The information-sharing agreement with 29 English councils began as a one-year trial in June and allows local authorities to seek information from the tax authority about employment and self-assessment records for a sample of residents who had not paid their council tax and received a magistrates’ court liability.

HMRC said: “The purpose of the pilot is to measure the potential yield the local authorities could have if they were to use HMRC data for an attachment of earnings order.”

The trial will see non-paying residents with an income contacted and told to start paying their debts or have their debts deducted directly from earnings via their employer.

A number of councils are participating in the scheme and are, on average, sharing around 4,000 data records.

The councils involved include Birmingham, Bradford, Brighton, Coventry, Ealing, Islington, Kensington and Chelsea, Manchester, Medway, Newham, Southwark and Tower Hamlets.

It is hoped that the pilot schemes will test whether debts can be managed and recovered using HMRC data. It will end in May 2020 and will be followed by a review to assess whether the data exchange is an effective way to increase debt collection rates.

Link: Pilot scheme launched to help recover millions in unpaid Council Tax

Other recent news

Coronavirus Future Fund opens to applications
22 May 2020

The Future Fund, which offers convertible loans of between £125,000…
Read more

Coronavirus Statutory Sick Pay Rebate Scheme set to open for claims
22 May 2020

The Coronavirus Statutory Sick Pay Rebate Scheme (CSSPRS), announced by…
Read more

Maximum Government-backed loan amount for larger businesses increased to £200 million
22 May 2020

The Government has announced an increase in the maximum amount…
Read more

Temporary tax freeze on home office expenditure announced
22 May 2020

The Government has announced a temporary tax and National Insurance…
Read more

Tax treatment of expenses and benefits during COVID-19
22 May 2020

The Government has updated its guidance on taxable expenses and…
Read more

»

Case Studies