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Business news : July 2008
Don't Adjust Tax Codes Yet
North Wales based Chartered Accountants Gareth Hughes and Co are advising employers and payroll managers not to adjust employees’ tax codes based on the change to personal allowances announced in May 2008. HMRC have issued guidance to this effect and will be issuing details of how and when the changes are to be implemented.
The £600 increase in the income tax personal allowance and the adjustment to the higher rate threshold resulted from a government ‘u-turn’ on the abolition of the 10p tax rate.
The personal allowance for the tax year 2008-2009 will be increased to £6,035 from £5,435, a compensation equivalent to £120 for each basic rate taxpayer.
Gareth Hughes comments: “The changes are good news for taxpayers, especially as the move is backdated to April. We will keep individuals informed as to when the government plans to implement the changes, and when taxpayers can expect to see an increase in their salaries.”
To find out more about how we can help you, or to arrange a free initial meeting, please contact us.
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Gareth Hughes & Co - North Wales Accountants |