Has anyone updated their Inland Revenue CDrom for the tax changes?

[KatyMac]

How easy is it?

Do I have to manually change the tax codes?

Do you mean the 2008 Updated Edition? If so, yes I did this. You had to update the tax code from any pay day after 17th May- & yes, it was manually

or is it another change? I do the church payroll & the Treasurer told DH that he had something for me - so is there another CD out for this month?

No

It is the new one you have to update ofter the 7th September for the changes to the tax code

I worked it out it is manual

x post

Eek - just looked online and seen an August update has been sent out. Are the codes increasing again?

Yes you do have to change the tax codes manually.

Don't blame HMRC, this is all down to the idiot Chancellor's 10p tax band cock up. Costing the country millions to sort out, both HMRC internal costs and the 'invisible' cost to employers.

Well I haven't paid my tax bill for the last 2 months cos I knew I was going to be stuffed this month

Er, the invisible cost is extra administration, not extra tax. The changes mean that net pay will be higher in September and the PAYE settlement figure on 19th October will be lower, so yes there is a cash flow issue but it is not huge. Unless you have agreed a fixed net payment with your employees of course, in which case the PAYE figure will be lower and so you will be better off.

If you are a small employer you should only be paying over PAYE quarterly anyway, or is this what you mean by not paying your tax bill for the last 2 months?

I pay my PAYE monthly because I get my monthly income - pay staff, pay bills, pay tax then spend what is left on my family. If I didn't I'd get confused about what is mine & what isn't.

If there net pay is higher - I need to find that money from somewhere - it could be as much as £60 each for 3 employees

As I only pay about £90 tax/NI a month - I kept that tax to pay them this - on the advise of an IR employee, but if you are telling me that is wrong, it doesn't surprise me

KM, the amount you pay to HMRC will be lower though. Basically, you'll pay the same amount overall, eg if total net pay last month was £1,000 and PAYE bill was £200 then that's £1,200 overall. This month net pay will be more say £1,100 so the PAYE bill will be £100 menaing the total bill is still £1,200.

It's all to do with Gordon's cock up in removing the 10% band

So if my bill is 90 & I have to refund 180?

The Revenue will refund £90

Actuall, more likely you just won't opay HMRC for a month or so

But as I don't have that money - I didn't pay for the last 2 months so I have it there to pay

My cashflow is a bit tight

KM, I think I see what you are saying, but you should be ok. This is my understanding of your situation(hope it's right!)

HMRC bill July - £90
HMRC bill Aug - £90
Total you owe - £180, which you still have?

Extra due to staff for Sept - £90
HMRC bill sept - £90 refund
So you oww HMRC £90(July) + £90 (Aug) -£90 (sept) =£90 in total

Total you owe £180, so what you already have?

I hope you see what I mean. Hard to explain without the actual figures

That's it exactly (ish)I think I have 180 to pay this month in refunds

I just couldn't risk not having enough to pay a tax refund

They did say they would send it to me after I had paid it within 30 days - but I haven't got it to pay iyswim

I think you did the right thing in not paying HMRC in July/Aug, otherwise you could've had a problem. But I think overall it should work out. Sometimes it's worth paying quarterly!

I agree but it's better to pay stuff when it's due because it might not last until the end of the quarter money is tight

I think you did the right thing in not paying HMRC in July/Aug, otherwise you could've had a problem. But I think overall it should work out. Sometimes it's worth paying quarterly!

ok, not sure what happened there

what I actually worte(computer playing up) was, that I am the same with home bills as we're very tight atm, some of it is thanks to Gordon Brown and his scrapping the 10% which has hit those who can least afford it GIT!

In the end they owed me £15....I think I can cope with that

that's good, glad it ll worked out ok nothing worse than constantly worrying about money