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In previous newsletters we have suggested that tax code D1 would likely be used to force deduction of tax under PAYE at 50% when this new higher rate is introduced in April 2010. Tax code D0 is currently used where all of an employee’s earnings are taxable under PAYE at the 40% tax rate. The current computer specifications for PAYE tax table routines define the use of tax codes D1 and even D2 for higher rates of tax. Most, if not all, computerised payroll systems are capable of handling tax code D1.

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Posted September 23rd, 2009 | No Comments »

The increased personal allowance comes into effect from paydays falling on or after 7 September.  The following new documents and booklets that reflect this change are now available to download from HMRC’s website:

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Posted August 25th, 2008 | No Comments »

HMRC has provided two pages of information, one for individuals and one for employers, about the way in which the increase in the personal allowance will be introduced from 7 September 2008.

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Posted July 21st, 2008 | No Comments »

(The following news item, which we published in May 2008, has been updated to incorporate further information that HMRC has released recently.)

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Posted July 7th, 2008 | No Comments »

On 13 May, the Chancellor announced to Parliament that, in order to reduce the impact of the removal of the 10% tax rate from April 2008,

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Posted May 19th, 2008 | No Comments »