
With effect from 6th April 2008, basic rate income tax will reduce from 22% to 20%, and the starting rate income tax band of 10% will be abolished. It is the change of tax rate from 22% to 20% which will affect the amount you deduct from your employees and pay across to the Group Personal Pension provider. Employers need to ensure they have a communication plan in place to communicate these changes to employees to avoid problems later!