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Inland Revenue

Tax Policy

Application date


(35 – PricewaterhouseCoopers)

There should be at least six months from the date the legislation is passed into law until the date the scheme is implemented.


Officials note that the application date for the scheme needs to be reviewed.

The bill envisages the scheme coming into operation from 1 April 2009. However, employers cannot begin the scheme until the bill has been enacted or they would be acting outside the law. Employers and payroll software designers also need time to promote the scheme to employees and build the necessary changes into their software packages. Inland Revenue also needs time to communicate the changes and amend its systems. This suggests the application date should be set on a date that is after the bill has been enacted.

On the other hand, the payroll-giving scheme is keenly awaited by charities and should therefore be available as soon as is practicable after enactment rather than waiting until the start of an income year (for example, 2010–11).

After consideration of all of these factors, we recommend that the legislation for the payroll giving scheme should take effect three months after the date of enactment.


That the submission be accepted in part, but that the application date for the proposed scheme apply three months after the bill has been enacted.