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Changes to tax codes

September 2008

For those who have not received the HM Revenue & Customs (HMRC) employers letter we have reproduced below changes to tax codes which need to be made from 7 September 2008.

The changes were introduced to soften the effects on some lower paid persons who were adversely affected by the scrapping of the 10% starting rate band for income tax on 6 April 2008. As well as changes to tax codes you should also have received new tax tables or changes to your payroll software that accommodate the lowering of the basic rate band for income tax purposes; from £36,000 to £34,800.

Changes to Tax Codes:

L codes- Add 60 to the existing code. For example 543L becomes 603L.

T codes- No change unless you receive P6 from tax office.

P,V or Y codes- No change unless you receive P6 from tax office.

A or H codes- These codes are no longer in use, seek advice from HMRC immediately if you are still using codes with these suffixes.