From 6 April 2011 significant changes were made to the operation of PAYE on
payments made to employees following the termination of their employment and on
the engagement of new employees who fail to provide a P45 and do not complete a
form P46. In both cases, employers are now required to deduct tax using code 0T
(zero T) on a non-cumulative basis. This will ensure that tax is deducted at
the basic, higher and additional tax rates where necessary (without taking
personal allowances into account).
Previously, employers were only required to deduct tax at the basic rate
(using code BR).
Further information and advice can be found at
www.hmrc.gov.uk.
If you would like more information on any of the
matters raised here, please give us a ring on
0845 258 1445. We have a wealth of experience in dealing with the tax authorities and
can advise clients on strategies for mitigating tax whilst ensuring that they
comply with HMRC regulations.
No comments:
Post a Comment