Published on 1st September 2008
As a result of the government emergency budget (13th May 2008) there is an increase to the Basic Personal Allowance of £600 for 2008-2009 and a £1,200 reduction in the basic rate limit.
The specific instruction on timing and how this is to be applied is detailed by HMRC at www.hmrc.gov.uk/forms/p7x-sept08.pdf.
Tax Code Uplift – P7X(2008)(2)
Tax codes with suffix L will be automatically increased by 60 for the first pay day on or after 7th September 2008. For example an old code 543L will become 603L.
Any other tax code changes will be notified by HMRC issue of individual P6 update instructions.
P46 Emergency Tax Code
For any P46 entered for an employee who is to be paid for the first time on or after 7th September 2008, the following tax codes should be applied:
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