HM Revenue and Customs (HMRC) has said that employers will be receiving details on what action they must take in order to get ready for the tax code changes set to come into effect in September.
The changes are the result of the new personal allowance for 2008/09 which was introduced by the Chancellor as a way of compensating people for the abolition of the 10p tax rate.
The basic personal allowance, the threshold at which employees become liable for income tax, is increasing by £600 from £5,435 to £6,035 and the basic rate limit is reducing from £36,000 to £34,800.
The new tax codes and rate bands, HMRC said, must be used from the first payday on or after 7 September.
HMRC is writing to all employers offering them advice on how to prepare in time.
The advice includes: making sure they have a P11 Deductions Working Sheet (P11) or equivalent record for every employee; applying any tax code changes that they get dated 23 August or earlier; and changing the existing tax codes following the last payday on or before 6 September in line with the instructions provided in the letter.
Bernadette Kenny, HMRC’s director general personal tax, said: “The letter includes some really useful information for employers. We are also updating our website so that all the relevant tools, tables and guidance that employers use will be at their finger tips come September.
“Employers will also get a revised Employer CD ROM along with Employer Bulletin issue 30 in August.”
If you need any help or support managing your payroll, please contact us.
Date:13 August 2008
|
