Personal Income Tax Threshold Changes: What Payroll Managers Need to Know
As part of the Government Budget 2024, several changes to personal income tax thresholds have been announced, aiming to provide tax relief for individuals and families. These changes will come into effect from 31 July 2024.
Here’s a breakdown of what you need to know and how it impacts payroll management for businesses.
What’s changing?
1. Increased Personal Income Tax Thresholds
From 31 July, your employees’ income will be taxed at new rates:
2. Extended Independent Earner Tax Credit
More employees will benefit from the independent earner tax credit:
3. Increased In-Work Tax Credit and Minimum Family Tax Credit
These adjustments will give more financial support to working families.
What Does This Mean for Your Payroll?
If The Accounts Department Manages Your Payroll:
Relax! We’ll handle all the necessary adjustments in your accounts on your behalf. Your employees’ pay will be updated to reflect the new thresholds without you lifting a finger.
If You Manage Your Own Payroll:
Heads up – you’ll need to make these adjustments yourself. This could take some time, so it’s crucial to start now to ensure everything is set up correctly by 31 July. This will help you avoid any disruptions or last-minute scrambles.
Payroll Software Users: Your payroll software provider should update the new rates. Ensure you apply these updates.
Manual Filers: Use the new tax tables from 31 July 2024. Ensure your calculations are updated accordingly.
Final Thoughts
Stay informed and ahead of the game with these new tax changes. If you have any questions or need assistance with your payroll and tax planning, reach out to us – we’re here to help!
Disclaimer: This blog post provides general information and should not be relied upon without consulting appropriate professional advice tailored to your specific situation.