In just over a week the new marginal tax rates for individuals become ‘effective’.

For actually calculating your year end tax obligations this date becomes somewhat academic as it is simply used to calculate the weighted average composite rate used for the 2025 income year before the new rates apply in full from 1 April 2025.

Where it will be important is for employers who deduct PAYE. New PAYE tables will be effective from 1 August and so the amount of PAYE you deduct will change. For employers using software to calculate payments this should hopefully be updated for you, but you may need to check. You may also need to update any automatic payments to reflect these new rates.

For those who manually calculate PAYE the IRD website is advertising that the new tables will be available online from 22 July with the calculators updated from 25 July.

For any employees using a secondary tax code, 31 July is also the date where you may need to change this code if you now fall into a lower threshold.

As always, if you need any assistance with these changes let one of our helpful team know.