FreeAgent and New UK Tax Codes
This was introduced to allow brave citizens of the United Kingdom to amend their tax codes following a late revision in this year's budget.
FreeAgent-Friendly accountant Chris Thomas discussed the changes here on The Central a while back, and if your tax code has been affected you just need to:
- Select Setup Payroll from this year's payroll screen, and
- Enter your revised tax code, a start date corresponding to the next payslip after the 7th September, and the remaining amount of gross salary to be paid this tax year
FreeAgent will then recalculate the remainder of this year's payslips while leaving the earlier ones in place (which wasn't possible before) and adjusting the tax due to allow for the revised tax code (based on what's been paid already, of course).
The revised tax bands are also correctly represented in our Self Assessment calculations (and have been since April) but these are not used to calculate payroll - that's what the tax code is for. For more details on the riveting subject of tax codes see this article at Directgov.
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