Budget 2009: Tax changes for high earners will affect relatively few people and have little impact on payroll

The chancellor, Alistair Darling, announced a ‘supertax' on those earning in excess of £150,000, a tapering of pension tax relief (from 40% to 20%) for people earning more than £150,000 and the removal of personal allowances for those earning more that £100,000.

But the IPP has confirmed with HM Revenue and Customs (HMRC) that payroll software will provide for an extra band to cover earnings over £150,000. HMRC claims the changes affect "relatively few people" so no extra burden will be placed on employers, and it will recover any underpaid tax from individuals directly.