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Income Tax: Tax Allowances

Volume 477: debated on Thursday 12 June 2008

To ask the Chancellor of the Exchequer (1) what estimate he has made of the number of PAYE coding notices that will need to be reissued as a result of his decision to increase income tax personal allowances in 2008; (206651)

(2) what estimate he has made of (a) the time required to process new PAYE coding notices required as a result of his decision to increase income tax personal allowances for basic rate taxpayers, (b) the resulting staff costs and (c) the resulting stationery and postage costs;

(3) what estimate he has made of the likely IT costs to HM Revenue and Customs of implementing his decision to increase income tax personal allowances in 2008.

[holding answer 19 May 2008]: The changes announced by the Chancellor on 13 May are being implemented using the established mechanisms for Budget changes which are designed to minimise costs as far as possible for HMRC and for employers. HMRC is working through the detailed plans for implementation, in consultation with employers, and the costs of implementation will be established as a result of that work.