Inland Revenue deduction notices

Inland Revenue may request that a client's unpaid taxes be directly deducted from their benefit payments.

All Inland Revenue deduction notices are sent directly to the Central Processing Unit for processing.

The instructions on the deduction notice are to deduct the lowest of either:

• 10% of the total debt which Inland Revenue specify in the notice, on a weekly basis or
• 20% of the client's gross earnings on a weekly basis

Where there are insufficient funds to cover the deduction, Work and Income must advise Inland Revenue immediately that the deduction will not start or will start at a reduced rate.

Inland Revenue deduction notices for unpaid taxes have a lower priority than Child Support deductions.

For more information see:

• Priority for deductions
• Inland revenue deductions