HMRC has said it will stick to a plan to introduce a ‘real-time’ pay-as-you-earn tax system by 2013, despite concerns from employers and payroll software companies that the timetable is “unachievable”. Nick Huber reports.
As part of a plan to modernise PAYE, which was introduced in 1944, employers will send information about tax and national insurance they deduct from employees’ wages to the Revenue when they are made - rather than at the end of the tax year as happens now.
The current system causes overpayments and underpayments of tax because some information is out of date.
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.