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AIA

Scope widens for RTI pilot

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4th Sep 2012
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HMRC is cautiously optimistic about the Real Time Information (RTI) pilot for PAYE which is "on track and going well", according to the latest update for tax advisers.

The taxman says it expects to expand the RTI PAYE pilot in two further stages as previously announced in April. HMRC also remains on track for all micro, small and medium-sized employers and most large employers and payroll bureaux to start sending payroll information to HMRC in real time in April 2013, and for all employers to be routinely reporting PAYE in real time from October 2013.

HMRC will be contacting some of the largest employers and payroll bureau shortly to discuss opportunities for them to start reporting PAYE in real time early to avoid end-of-year reporting for 2012-13.

HMRC will set up new pilot scheme after November 2012.

Other highlights of the Agent Update include the Consultation on revision of Extra-Statutory Concession A19 and the joint initiative on HMRC service delivery.

Consultation on revision of ESC-A19

The consultation, which ends on 24 September, seeks views on revised ESCs that would:

Introduce the concept of 'taxpayer responsibilities' in respect of ESC A19 claims against the recovery of underpaid income tax in line with the HMRC Charter

Remove reference to capital gains tax, on the basis that the requirement for individuals to self-assess for capital gains makes ESC A19 redundant

Joint initiative on HMRC service delivery

In September 2011, the chairman of HMRC Mike Clasper hosted a meeting in response to the House of Commons Treasury Select Committee’s recommendation that HMRC should work closely with the professional bodies, tax charities and businesses to improve the end-to-end experience of dealing with HMRC.

Progress made includes:

Implementing a number of improvements around the P35 end of year return process, including an extra reminder and more timely letters to say that returns were late and potentially subject to penalties. The aim was to increase the number of returns filed on time and reduce the number of penalties issued for failure to file. HMRC received over 70,000 extra P35 No Return To Make notifications and over 85,000 extra returns as a result of this exercise. This means fewer employers have incurred P35 penalties this year.

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Chris M
By mr. mischief
05th Sep 2012 07:20

Is the scope a real test?

My biggest concern about RTI is quite simple:

The UK tax system goes into meltdown in April each year when we throw all this data at it.  Will this pilot demonstrate that it can cope with the total volume of data every month without going into meltdown?

My concern here is that a proportionately much higher level of IT resource and personnel is being thrown at the pilot than we'll see on "go live".  When true "go live" volumes connect with the actual database and actual levels of staff, the situation could be very different.

So far I've seen nothing in the reports coming out of HMRC on RTI to allay this fear.

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By donquixote34
10th Sep 2012 15:39

Penalties

To misquote Gilbert & Sullivan; 'the penalty should fit the crime'.  

Why can't the presumption be that salary/wages have stayed the same?  If there are no changes to report, why have a weekly or monthly deadline for RTI at all?

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By jiatbanus
10th Sep 2012 17:38

RTI ON TRACK!?

HMRC is "optimistic". Just like the onset of employee pensions, the VAST majority of Micro and small companies haven't the faintest idea about RTI. Furthermore; who wants or needs it. Does your FIRM need RTI? Are any of your employees, associates and partners likely to be in need of Universal Credits (should there ever be a link between HMRC and DWP computers!)

It really is about time that the TAXPAYER (remember him?) let the Civil SERVANT know that we're just far too busy for to absorb any more of their crazy time consuming administrative nightmares.   

The faster computers become, the more HMRC and HMG create ways to consume their capacity. More and more employee time is spent online filing all sorts of stuff so that "they" can spend more time carrying out BRCs and dreaming up more and more ways to keep businesses away from earning a living.

And what happened to the reduction in bureaucracy? 

 

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