When the new income tax rate for earnings over £150,000.00 was introduced in April, HMRC announced that its systems were unable, at that time, to handle a tax code D1 for the employees affected. For the 2010/11 tax code, the correct liabilities for 50% tax payers will be assessed.
Historically, when there were several different higher rates of tax, a number of “D” tax codes were used – D0 (which is still in use), D1, D2, etc. HMRC has since announced that, from the 2011/12 tax year, D1 will be introduced and issued on P9 coding notices in advance for employers to apply from the start of the tax year.
As a consequence of these amendments we are ensuring that Imago can accept and calculate the new tax code accordingly.