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Tax Tip

New PAYE Codes from April 6th 2011.

From April 6th onwards, new PAYE Tax Codes for starters and leavers are being introduced. They apply to two main areas:

• Where you make a payment to a new employee when they haven’t given you a P45 or returned a signed P46.
• Where you pay an old employee after they have left i.e. holiday pay or commission

In both cases you should now apply an OT (zero tax free allowances) code instead of the BR (Basic Tax Code) code. All the forms should be submitted on-line from that date also, failure to do so could result in a fine of £100 or more.

For more information or if you have any questions or wish ABDS to take over your PAYE, please contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar NOW.
ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail: abds.marketing@netaccountants.net

For a full list of ABDS’ News Briefings go to: www.netaccountants.net

Added 05/04/11

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