The Association of Chartered Certified Accountants (ACCA) has warned that a change in taxpayer’s personal allowances could cause confusion for businesses.

The personal allowance is the amount of money earned before tax is paid. At present the basic allowance for the 2008/09 tax year is £5,435.

In September the new allowance will come in to force, which will backdate payments to April 2008, putting the new amount at £6,035.

Chas Roy Chowdhury, head of taxation at ACCA, said: “The arrangements mean that pay packets will look different in September… The changes will only benefit basic rate taxpayers, not those paying 40 per cent.”

The basic rate tax band will reduce from £36,000 to £34,000. Anything above that amount will then fall into the 40 percent band.

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