Understanding your Tax Code from April 2012:
For 2012–13 the basic Personal Allowance will be £8,105 and the basic rate limit will be £34,370.
- The new threshold (starting point) for PAYE is £156 per week (£675 per month).
- The new emergency code is 810L.
Tax rates and bandwidths are:
Rate % Bandwidth
Basic Rate 20% £1 to £34,370
Higher Rate 40% £34,371 to £150,000
Additional Rate 50% £150,001 and above
All employee’s with an L tax code will have 63 added to this year’s tax code, for example 747L now becomes 810L. All unusual tax code will be sent out on a P9(T). (If you are a client and you have received any of these please could you forward them to the office as soon as possible).
For more information on this subject please visit HMRC’s website http://www.hmrc.gov.uk/incometax/tax-codes.htm or feel free to ring us at the office.