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Govt: Get ready for tax changes

Thu 24 Jul 2008 at 3:43 PM

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The government has told employers to get ready for coming tax changes and has begun sending them advice on how best to prepare.

HM Revenue & Customs (HMRC) is contacting companies ahead of the September changes, which see employees' basic Personal Allowances rise.

Bernadette Kenny, director general personal tax, said the HMRC's letter contains really useful information for employers.

"We are also updating our website so that all the relevant tools, tables and guidance that employers use will be at their finger tips come September," she added.

The new tax codes and rate bands come into force from the first payday on or after September 7th.

The new allowance will increase £600 to £6,035 and the basic rate limit is to be reduced £1,200 to £34,800.

Workers recruited via job agencies have their pay and benefits handled by the human resources department of the firm they later work for.

Employees in human resources departments need a thorough understanding of employee law and recruitment procedures.


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