Amendments to PAYE regulations were laid on 11 March 2011 including a change to the default code to be operated on payments after the issue of a P45, from BR to the newly defined 0T.
Where default codes are used to collect tax they do not take into account an individual’s personal allowances or cumulative income in any year.
Following representations, HM Revenue & Customs are amending the Regulations with a view to being effective from 6 April 2011, so that BR applies to payments to leavers in respect of share scheme related realisations. Further guidance will be issued before 5 April 2011
Follow this link to find the Income Tax (Pay As You Earn) Regulations 2011 (Opens new window)
