Chancellor Alistair Darling has announced an increase in the personal allowance of £600 and an adjustment to the higher rate threshold (the total of the personal allowance and basic rate limit) as reported in the earlier article, ‘10% tax rate climb down’.
 
HMRC have issued guidance to employers advising them that they should not make any adjustments to employees’ tax code numbers and should continue to use the allowances and guidance published in May 2008. This means that employees will not see the impact of these changes yet.

HMRC have advised that they will be issuing details in the next few weeks of how and when the changes will be implemented.  We will keep you informed of developments.

Internet links: HMRC guidance