Company
accountants and payroll staff can expect far more queries than normal this month, according to a tax expert.
The 2007 budget contained plans for significant changes to income tax bands, together with alterations to the national insurance contributions (NICS) system.
Those changes will come into force when the new tax year commences on April 6th and Leonie Kerswill, tax partner at PricewaterhouseCoopers, warned that some workers would be in for a shock when they receive their next salary payments.
"Many people will have forgotten what changes are afoot and most will not have worked out how they are affected - so the month end payslips could bring a few surprises," said Ms Kerswill.
The most significant changes to the income tax regime include the abolition of the ten per cent rate, a reduction of the basic rate from 22 per cent to 20 per cent and an increase in the personal allowance.
However, the upper earnings limits for both class one and class four NICS have risen.
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