Business News

Consultation under Way on PAYE Reform

HM Revenue and Customs (HMRC) is inviting employers to respond to a second phase of consultation on improving PAYE through the use of Real Time Information (RTI).

The consultation, launched on 3 December, follows an HMRC discussion paper published in July 2010, which outlined RTI as a way to reduce costs for employers and HMRC and improve customer service for individuals.

The RTI process will allow information on tax and other deductions to be submitted automatically to HMRC at the same time as employees are paid.

Following a positive response to the discussion paper, ministers have decided to proceed with a phased introduction of RTI, beginning in 2012.

The new consultation document explains how RTI will work in more detail and sets out a timeline for its introduction.

HMRC says it is keen to hear the views of interested parties on the proposals and particularly on the information it proposes employers will have to submit to HMRC and the channels to be used to send this.

It stresses that its intention is that RTI should involve only data already collected and recorded by employers for PAYE purposes or to satisfy other existing legislative requirements.

The consultation runs until 28 February 2011.

LINK: PAYE RTI consultation