Basic Personal Allowance
For 2016 to 2017 the basic Personal Allowance will be £11,000 and the basic rate limit will be £32,000.
The new threshold (starting point) for PAYE is £212 per week (£917 per month).
The new emergency code is 1100L for all employees.
Income Tax rates and bandwidths are:
UK Rate % Bandwidth Scottish Rate % Bandwidth
Basic Rate 20% £1 to £32,000 Basic Rate 20% £1 to £32,000
Higher Rate 40% £32,001 to £150,000 Higher Rate 40% £32,001 to £150,000
Additional Rate 45% £150,001 and above Additional Rate 45% £150,001 and above
This guidance tells you what you have to do to get ready and when to make the change to suffix L codes. For any employees
with an S prefix you have to use Scottish tax rates.
Get ready for the new tax year starting on 6 April
For each employee who will be working for you on 6 April you will need to:
• prepare a payroll record
• identify the correct tax code to use in the new tax year
• enter the correct tax code on the payroll record
When we send a new tax code for any of your employees, you will receive one of the following:
• a paper form P9(T), ‘Notice to employer of employee’s tax code’
• an Electronic Data Interchange notice of coding
• an internet notification of coding if you are registered to use our PAYE Online – Internet service
To access your online coding notices:
• go to www.gov.uk/paye-online-log-in and select ‘Start now’
• select ‘PAYE for employers’
• log in and select ‘PAYE Online’
• from the ‘notice summary box’ select ‘Tax Code Notices’
• from the list in the ‘Tax Year drop down box’ select the new tax year (2016 to 2017)
Please keep this notice with any new tax codes until you are ready to set up your 2016 to 2017 payroll. We will not send a new
tax code for every employee.