Chancellor’s Statement 13 May 2008
The issue dominating all the news this week is the Chancellor’s announcement of changes to the personal tax system. The statement infers that these changes will come into effect from September, however an implementation date has yet to be announced. In fact there are still a lot of areas needing clarification but, rest assured, we will keep you updated as more information becomes available.
Progress so far
Since the announcement on 13 May HMRC have been consulting with external representatives to include the IPP Policy team and software developers in order to move forward with the changes required. Rest assured that HMRC are mindful of the employer’s role and any burden they may incur as a result of these changes, and are conscious that relevant guidance will be required in good time.
A major concern was that of implementing the resulting tax code changes; however we have been informed that any required changes would follow the usual budget procedures. For tax code changes it is expected that employers will receive form P7X which usually details the required instructions for such as tax code uplifts etc. There will of course be the need for individual tax codings for any ad hoc uplifts such as T codes. For those registered for e-filing you can expect to receive notification via the Data Provisioning Service (DPS).
Another concern was that of tax and NICs alignment. These changes are not a departure from the plans already in place for tax and NICs alignment.
As stated above we have not had final confirmation of the September date; however that is the date all concerned are working towards. Further consultation will be on-going on a regular basis until such time final decisions have been reached. Your Policy team will keep you informed as soon as we have further confirmation of developments.
For further information please visit www.payrollprofession.org or email info@payrollprofession.org
