Below is a snapshot of some of the changes to personal and employment taxes that came into force on 6 April and some key dates to remember.

Changes to personal and employment taxes

Basic personal allowance increases by £1,000 to £7,475.

Basic rate band of tax falls by £2,400 to £35,000.

The rate of employees’ and employers’ National Insurance Contributions increase by 1%.

Employees can no longer be compulsorily retired at the age of 65.

Termination payments to an employee paid after the issue of their P45, which do not fall within the £30,000 exemption must have the tax code 0T applied . This will deduct tax at the 20%, 40% or 50% rate, the individual’s own tax position. Previously the BR (20%) code was used.

New paternity rules allow parents to share additional paternity leave entitling employees to take up to 26 weeks leave to care for the child, on top of the two weeks of ordinary paternity leave.

Higher rate taxpayers who join childcare voucher schemes will have their tax relief capped at the basic rate of 20%.

Health in pregnancy and Surestart maternity grants were abolished.

Employees using their own car for business may be paid 45p per business mile (for the first 10,000 miles) up from 40p.

The car fuel benefit in kind multiplier increases by £800 to £18,800 making the fuel benefit more costly to employees.

Forms P46(car) have been re-introduced to update HMRC on changes in car and fuel benefits. These are due quarterly.

We expect HMRC to introduce in-year records checks in the autumn. Employers who do not keep adequate records may face penalties of up to £3,000.

Critical dates reminder

Any outstanding PAYE / NI due for the year to 5 April 2011 should be paid by 19 April. Late payment surcharges were introduced 6 April 2010 and we expect to see the first such surcharge notices shortly.

Employer Annual returns P35, P14 are due for submission by 19 May and most employers must file this form online.

Employers must give employees their annual form P60 by 31 May – this may now be done by email, provided the employee has consented.

Forms P11D are due for submission by 6 July, with copies to be provided to employees by the same date.

Class 1A NIC due for year to 5 April 2011 should be paid by 19 July.

Monthly payments of PAYE/NI must be made by 19th of the month following the relevant tax month.