What do I need to know about the tax changes made in September 2008?
On 13th May, 2008, Alistair Darling announced in increase in personal allowances, and this was included in the Finance Bill 2008. As a result, all tax codes ending in L should be increased by 60, for the first pay date on or after the 7th September (except where the employee had already left).
When you calculate a pay run for this period, our system will automatically ask you if you wish to update the tax codes.
From the same date, there is also a change in the basic rate tax bandwidth, so higher rate tax payers do not benefit from the tax code change. Our system automatically uses the appropriate bandwidth without you needing to take any action.
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