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HMRC to change year-end PAYE scheme

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18th Nov 2011
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HMRC is to change its Pay As You Earn (PAYE) system to detect owed deductions on a monthly basis, rather than yearly, in a bid to make the system easier for employers.

Using Real Time Information (RTI), tax and deductions will be transmitted to HMRC each time an employee is paid, meaning employers will no long be required to provide information using forms P35 and P14 after the year end or to send p45/46 when employees start or leave employment.

The phased introduction of RTI will begin in April 2012 with an initial pilot. HMRC hope to increase the number of employers joining RTI during 2012-13 following the scheme's success. 

South east accountants and business advisers James Cowper welcomed the move, stating it will no longer unfairly punish employers with unknown systematic errors in their PAYE payment systems.

Nick Butler, head of JC Payroll, James Cowper’s dedicated payroll bureau, said: "This is a sensible decision from HMRC and will be a relief to many business owners. Together with the notifications from HMRC that already exist when a late payment is made, businesses now have every opportunity to avoid substantial and unexpected year-end penalties."

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By Cloudcounter
20th Nov 2011 16:11

To make things easier for employers

If you believe that is the motive, then you'll believe anything!

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By johnjenkins
21st Nov 2011 09:13

Nothing HMRC

does is for the tax payers or agents benefit. It is only to get as much money they can in the shortest time.

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By justsotax
21st Nov 2011 15:23

just can't believe an accountant has come out to say...

that this is such a great idea.....

"This is a sensible decision from HMRC and will be a relief to many business owners. Together with the notifications from HMRC that already exist when a late payment is made, businesses now have every opportunity to avoid substantial and unexpected year-end penalties."

Is this statement for real?!?! ....reflief for many businesses.....?!  So doing something 12/52 times a year is going to be less hassle than the current once.  And what happers if you fail to do the appropriate RTI submission - let me guess.....a penalty?  Of course this all assumes that the system the Revenue have in place is 100% perfect....hmmm now let us consider that statement.....public service - computer system - removes any systematic errors.......

 

 

 

 

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By Peter Tucker
22nd Nov 2011 12:12

Compare & Contrast

Please compare and contrast the work by HMRC in this particular area and the views of some other individuals, who I assume are not employed by VodaFone or Goldmans Sachs.

http://www.youtube.com/watch?feature=player_embedded&v=8ZfFAbJK0m0

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