Q: Can we confirm whether ESCT rates can be changed during the year, even if they were checked on 1 April?

We’ve been told that some systems will adjust the rate threshold if a pay change moves the employee into the next tier.

---

A: No, ESCT is a final tax; if the rate is set on the 1st April for an employee who worked the last 12 months, that is what it is based on. The ESCT may be set during the first year when an employee starts partway through the year, then an estimate is made.