Tax Band Changes - September 2008

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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 recently published some clarification for employers regarding basic rate tax band limits which was introduced following the 2008 Budget on 12th March. These changes were announced originally in the Budget in 2007.

The Chancellor of the Exchequer announced in the 2007 Budget, the rates of deduction that were meant to apply from 6th April 2008, meaning HMRC produced new tables to be ready for use from 6th April 2008. This is rather than 18th May 2008 as originally stated.

This was reflecting removal of the 10% rate for PAYE income as well as the reduction to 20% from 22% of the basic rate. NB: These changes would have been completed as part of your year end procedure.

Employers whose payrolls are computerised will now have to ensure that they have software with these April 2008 tax changes available starting in the new tax year.

The Chancellor announced in the Budget of 2008 that basic rate band widths would be raised to £36,000 (from £34,600 in 2007/08). This change, implemented on the first payday after 17th May, requires a 2nd set of tables including a ‘use from 18th May’ instruction.

Revised tables will be prepared and should be available for downloading from the HMRC web site or for ordering from the Employer Order line in April 2008.

Employers whose payrolls are computerised need to ensure payroll software is updated to include the revised tables and ready for use on the first payday after 17th 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 tax rate band width changes are to be implemented the firstpay day after 17th May, the way in which calculations for PAYE are made, i.e. on a cumulative basis each week, means changes should be backdated to 6th April 2008 for all affected employees.

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