Pre-Budget Report 2008 – Further PAYE tax information

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The latest issue of HMRC’s Notes for Payroll Software Developers provides the following additional information regarding the implementation of tax changes from April 2009.

All of the tax changes for 2009/10 will be applied from 6 April 2009, namely

• all ‘L’ suffix tax codes increase by 44 points, e.g. from 603L to 647L
• P9 coding notices are issued for employees with other suffix tax codes
• the emergency tax code becomes 647L
• the band of earnings on which tax is paid at the basic rate increases to £37,400
• new taxable pay tables B to D will come into use.

As a result, there will be no tax changes from week 7/month 2 as there have been in recent years.

Also from April 2009, tax code suffix ‘V’ will cease to be used. The use of tax codes with the ‘V’ suffix is limited to persons who are entitled to both the higher personal allowance for those aged 65 to 74 and the lower married couple’s allowance where at least one spouse was born before 6 April 1935. Anyone born before 6 April 1935 will be a least age 75 at some point in the 2009/10 tax year and so will be entitled to the higher married couple’s allowance. HMRC is to issue P9 coding notices for everyone with ‘V’ suffix tax codes in February and March 2009. There is no suggestion of a new suffix so presumably the existing suffix code ‘T’ will be used.

Bulk P9 notices are no longer supplied on paper lists but employers registered for PAYE Online will be able to view their changes online, either through their payroll software if it has the capability or by using HMRC’s Data Provisioning Service online Portal Viewer. Employers not registered for PAYE Online will receive individual P9s.

Individuals will receive P2 coding notices from January onwards, together with a leaflet that encourages them to check out the guidance on HMRC’s website if they need more information about their tax code.

Further information:
December 2008 issue of Notes for Payroll Software Developers

This entry was posted on Monday, December 22nd, 2008 at 05:00 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.