General PAYE News
Finance Bill (No.2) 2017-18 draft legislation published 5 December 2017
The government has published the Finance (No.2) Bill which introduces the draft legislation for many of the measures announced in the Autumn Budget on 22 November.
Draft clauses include:
• Income tax charge for tax year 2018-19 • Main rates of income tax for tax year 2018-19 • Default and savings rates of income tax for tax year 2018-19 • Starting rate limit for savings for tax year 2018-19 • Transfer of tax allowance after death of spouse or civil partner • Deductions from seafarers’ earnings • Benefits in kind: diesel cars • Termination payments: foreign service • Employment income provided through third parties • Pension schemes • CO2 emissions figures etc.
The Finance Bill (No.2) 2017-18 was published on 1 December 2017, along with the necessary supporting documents.
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Payroll rates and thresholds for 2018-19 5 December 2017
Following the publication of the Finance Bill, HMRC’s Software Developers Support Team (SDST) has provided the rates and thresholds for the 2018-19 tax year.
Personal Allowance: 11,850
Standard tax code: 1185L
Higher rate threshold (rUK): 46,350
Income Tax rates (rUK): Basic rate 20% 1 – 34,500 Higher rate 40% 34,501 – 150,000 Additional rate 45% 150,001 and above
Tax code uplifts: • Suffix L: 11500 to 11850 = 350 increase, therefore uplift 35 • Suffix M: 12650 to 13035 = 385 increase, therefore uplift 3 9 • Suffix N: 10350 to 10665 = 315 increase, therefore uplift 31
Class 1 NICs rates and earnings limits: See attached table
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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