Tax rates changed for the tax year commencing 6th
April 2010. The main changes are:
Removal of Personal Allowance
For members with earnings in excess of £100,000,
the personal allowance is removed gradually. HMRC will reflect this in the
pensioner’s tax code. The process used by Omni does not need to change.
You will need to update the tax code when it is received from HMRC.
Additional Tax Rate
A new tax rate starts on 6th April 2010.
HMRC refers to this as the ‘Additional Rate’. The rate is 50% for
taxable earnings in excess of £150,000.
The new information needs to be entered when you
create the Tax Rates record for the new tax year.
Omni will then calculate the tax due on the new basis.
A new tax code will be used for some members –
‘D1’ means that all earnings are taxed at the additional rate of
50% (similar to D0 for all earnings taxed at 40%).
See also HMRC tax rates