New 2012/13 PAYE tax codes

  
HMRC are commencing to issue PAYE tax codes for 2012/13 to be applied from April 2012 onwards. It is important that these coding notices are checked carefully as an incorrect code will result in too little or too much tax being deducted from pay or pension payments.
 

If you are unsure that your coding notice is correct or would like some further advice then please contact us.

 
Good news for basic rate taxpayers
 
The majority of taxpayers will see an increase in their tax code as the personal allowance for those under 65 increases from £7,475 to £8,105.

Those individuals with simple tax affairs (just one employer with no reliefs or benefits or tax underpayments brought forward) will generally not receive a coding notice. Their current coding of 747L will be automatically uplifted to 810L following general instructions to employers.

 
Not so good for higher rate taxpayers
 
Although the personal allowance is increasing, the point at which taxpayers start to pay the higher rate of 40% tax on their taxable income is decreasing (from £35,000 to £34,370). This means that basic or higher rate taxpayer will generally benefit from the same tax saving of £126.
 
and for those earning over £100,000
The withdrawal of the personal allowance for those with income over £100,000 income limit applies for 2012/13. The reduction in the personal allowance is by £1 for every £2 of adjusted net income above the income limit. Adjusted net income for these purposes is broadly all income after adjustment for pension payments, charitable giving and relief for losses. Individuals with adjusted net income of at least £116,210 will not be entitled to a personal allowance for 2012/13.

more from PAYE & Employers

RTI relaxation for the small employer
HMRC have announced that, for some smaller employers, they will relax the reporting requirement for RTI that payments to employees should be reported on or before the amount is paid to the employee.
PAYE Real Time Information (RTI)
Time is running out...HMRC are issuing final reminders to employers to 'act now' in order to be ready to report PAYE under Real time Information (RTI).
PAYE Coding Notices
HMRC are issuing PAYE tax codes for 2013/14, with some good news for some.
Common P11D errors
The forms P11D, and where appropriate P9D, which report benefits and expenses for both employees and directors for the year ended 5 April 2012, are due for submission to HMRC by 6 July 2012.
P11d deadline looming
The forms P11D, and where appropriate P9D, which report employees and directors benefits and expenses for the year ended 5 April 2012, are due for submission to HMRC by 6 July 2012.
Bumpy road ahead for company car drivers
Changes in the emissions bandings and tighter thresholds will increase the tax cost of a company car even if the company car driver does nothing
New HMRC penalties for failing to file payroll forms online
The latest HMRC Employer Bulletin has confirmed that they intend to impose penalties on all employers who fail to send their payroll starter and leaver forms online from April 2012.
P11d Benefits in kind – reporting and dispensations
As the end of the tax approaches, so does the task of declaring benefits in kind and expense payments paid to employees and directors for the tax year ending 5 April, this relates to all employers, sole traders, partnerships or LLP and companies.
New 2012/13 PAYE tax codes
HMRC are commencing to issue PAYE tax codes for 2012/13 to be applied from April 2012 onwards.
New Businesses National Insurance Contributions Holiday
If you are a new business which started after 22 June 2010 (budget day) then you may be entitled to extra help in the first year of trading.
National Minimum Wage rates w.e.f. 1 October 2011
The National Minimum Wage (NMW) hourly rate increases at 1 October 2011
PAYE remittance booklet problems
HM Revenue & Customs (HMRC) may be unable to issue all the PAYE Payment booklets for the tax year 2011–12 to employers in time for the first payment to be made by 19 or 22 May depending on payment method.
HMRC scale rates for subsistence payments
New guidance for scale rates for subsistence payments issued by HMRC
Additional Maternity and Paternity Pay and Leave
The government had previously announced their intention to extend Statutory Maternity Pay (SMP), Maternity Allowance and Statutory Adoption Pay from the current 39 weeks entitlement to 52 weeks.
National Minimum Wage Prosecutions
HMRC have issued a warning to employers about their programme of targeted enforcement of national minimum wage (NMW) procedures.
Don’t Tell Them!
Certain employers are apparently receiving bogus copies of form P86.
E101 Forms
A revised application 9CA8421) for an E101 form for employees working in more than one country in the European Economic Area is now on the centre for Non-residents’ section of the Revenue & Customs website.
PAYE Payment Enquiries
The Shipley and Cumbernauld phone numbers for PAYE payments enquiries have been replaced by a single number
Delay in issuing 2006/07 e-filing incentive cheques
Delay in issuing 2006/07 e-filing incentive cheques
BACS payments
BACS
CFW Accountants

Northants Chamber of Commerce Member  ACCA  ICAEW
privacy statement - terms of use

CFW Accountants and Business Advisers