Tax Band Changes - September 2008

September 2008 Changes

Please download the information sheet [link above] which explains the changes to the tax bands. The action is the same as was completed in May 2008.

Information for changes in our applications

In the same way that we amended the bands in May you will need to complete the changes in September, We have included the May changes for clarity along with the documents that we issued at that stage. Substituting the new bands will accomodate the new requirements as previuosly.

If you need any further clarity then please contact the service desk.

May 2008 changes

HMRC have published some clarification for employers regarding the basic rate band limit that was introduced following the 2008 Budget on 12th March. These changes were originally announced in the 2007 Budget.

The Chancellor announced in the 2007 Budget the rates of tax deduction to be applied from 6th April 2008, meaning HMRC had to produce new tax tables ready for use from 6th April 2008 (rather than 18 May 2008). This was to reflect the removal of the 10 per cent rate for PAYE income and also the reduction in the basic rate from 22 per cent to 20 per cent. NB: These changes would have been completed as part of your year end procedure.

Employers with computerised payrolls will now need to ensure they have new software with the April 2008 changes ready for the start of the new tax year.

In the 2008 Budget on 12 March the Chancellor announced the basic rate bandwidth would be raised to £36,000 (from £34,600 in 2007/08). This change is to be implemented on the first pay day after 17 May, and will require a second set of tax tables with a ‘use from 18 May’ instruction. These revised tax tables are currently being prepared and will be available to download from the HMRC website or to order from the Employer Orderline in mid April 2008.

Employers with computerised payrolls will need to ensure that their software is updated again to include the revised tax tables ready for use on the first pay day after 17 May 2008.

 Information for changes in our applications

New Tax Band changes for implementation the first pay day after May 17^th 2008.

The following documents [requires  - free] explain where to find the tables along with the ammendments that you need to make.

Although the rate bandwidth changes are being implemented on the first pay day after 17 May, the way that PAYE calculations are made on a cumulative basis each week or month means that changes will be backdated to 6 April 2008 for all employees affected.

• Aztech Temps Changes Guide
• Enterprise Temps Changes Guide

Please contact our Service Desk if you have any issues with clarity or implementation.

Thank You
Lee Barber
Service Desk Manager