| Tucked away in a recent
issue of ‘Notes for payroll software
developers’ is a bit more information on
the timescale for the increase in the
current year’s personal allowance from
£5,435 to £6,035 and the reduction in the
higher rate point from £36,000 to £34,800.
These changes mean that basic rate
taxpayers will benefit by £120 per tax
year whilst the position of higher rate
taxpayers will be unchanged. The
guidance notes state that the change is
expected to take place from 7 September
2008, subject to Parliamentary approval
and Royal Assent of the Finance Bill.
The guidance goes on to state that a
revised employer CD rom will also be
issued at around that time to confirm the
changes. Those individuals on
straightforward PAYE tax codes (suffix L)
will have their tax codes uplifted to
reflect the change. Individuals with more
complicated circumstances will be issued
with individual coding notices nearer the
time.
Employers and employees need do nothing
for the time being. We will keep you
informed of developments.
Internet link:
HMRC notes |
