The Institute of Payroll Professionals' Karen Thompson outlines the areas of uncertainty surrounding the Conservatives proposed changes to income tax.
The Conservative Party has released new proposals for a new automated bank-based system that would remove the responsibility of deducting and paying income tax from employers.
Under the proposed system, income tax and national insurance contributions would automatically be deducted from employees' gross pay, removing the need for employers to process different tax codes and pay income tax for employees. This means the responsibility for calculating NI and income tax contributions would fall to HMRC.
So what could this potentially mean?
- Employer submits gross pay information to HMRC via t...