On the 6 April, the tax personal allowance (the amount you can receive before you pay tax) of everyone born after 1938 increased from £10,600 to £11,000. Your employees receive this allowance through the PAYE system with an adjustment to their tax code.
In order to facilitate this, unless you are told differently by HMRC via the issue of a new tax code, you will need to increase your employees’ tax codes by 40.
For example, if your employee’s tax code was 1060l last year, it will need increasing to 1100l for the year 2016/17 tax year.
Whilst your payroll software should do this for you automatically, it would be worthwhile making a double check.
If you require any help with your payroll reporting please call David Swann on 01733 372681 or email him at: david@greenstones.co.uk