Ciot stresses new tax rules are easy to implement

Date: 4th September 2008

The changes to employees' personal tax free allowances should not affect small businesses too much, taxation experts have claimed.

Under the new rules, people who pay tax at the basic rate should receive some extra cash.

Now, the Chartered Institute of Taxation (Ciot) has confirmed that it does not believe it will be hard for small businesses to cope with the changes.

Ciot's chair of the management taxes committee, John Whiting, stressed that it would be "fairly straightforward" for businesses to implement the changes.

"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," Mr Whiting explained.

"Although, that said, it will be an extra little bit of fiddling around and although it is easy and relatively minor [bosses] would probably rather not have to do it."

Earlier this week, HM Revenue & Customs (HMRC) told sole traders and self-employed workers they would "have the new allowance taken into account in their tax calculation for 2008/09" when they completed their self assessment tax returns.