Lengthy lead-in time for new tax-free personal allowance rules should make adoption easy for smaller firms.
Small businesses should find it "fairly straightforward" to adopt the upcoming changes in employees' personal tax-free allowances because of the time taken to implement the regulations, the Chartered Institute of Taxation (CIOT) has said.
John Whiting, the chair of the organisation's management taxes committee, commented that although the system was originally announced in mid-May, HM Revenue and Customs has given companies time to take in the changes and draw up new tax tables.
"It's all taken a bit of time to prepare but fingers crossed the net effect is that employers should find it quite easy to do and just part of the normal PAYE," he added.
Gordon Brown introduced alterations to the tax-free allowance system as chancellor of the exchequer in the 2007 Budget. Under the new rules, the ten pence tax band has been abolished leaving two grades - a tax-free allowance with earnings above that taxed at 20 per cent and a 40 per cent tax level from earnings over £43,000.
The CIOT is a registered charity concerned with studying the administration and practise of taxation.
