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Employers must update tax codes
September 7 saw personal allowances for all basic rate taxpayers increase by £600 but there is a real risk that many employers will not update the codes in time for a pay run at the end of this month.
That’s the verdict of Andrea Vowles, head of the payroll Bureau for accountants, HWB who says: “The changes will mean a one-off administrative burden for employers or payroll managers. But as the changes are relatively similar across the majority of cases, this should not be too problematic.
“Prior to 7 September employers should apply any tax code changes dated 23 August or earlier but must not operate these codes before 7 September. They will also need to calculate whether tax refunds are due to any employees that were adversely affected by the 10p tax changes earlier in the year.”
Tax codes suffixed with the letter ‘L’ must be changed by employers adding 60 to them. For example the old 543L tax code will become 603L tax code. Tax codes with other prefixes - T, P,V,Y,NT,BR,DO or K - should not be altered unless an employer receives a P6 notice.
For further information on tax or payroll issues, contact Andrea Vowles, HWB, 023 80 461200.
HWB
Chartered Accountants, Highland House, Mayflower Close, Chandlers Ford, Eastleigh,
Hampshire, SO53 4AR.
