HMRC is issuing advice on tax codes, to help businesses prepare for changes that will be required for many individuals.
New codes and rate bands must be used from the first payday on or after 7 September, when the basic personal allowance will increase from £5,435 to £6,035, and the basic rate limit will drop from £36,000 to £34,800.
HMRC is writing to all employers advising that they can get ready in good time by:
- Making sure that for every employee they have a P11 Deductions Working Sheet (P11) or equivalent record
- Applying any tax code changes received dated 23 August or earlier
- Changing existing tax codes following the last payday on or before 6 September, in line with instructions provided in the Revenue's letter.
HMRC's director-general of personal tax, Bernadette Kenny, said: 'This 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.'
Businesses will receive in August a revised Employer CD ROM, along with Employer Bulletin issue 30.
