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07 Sep 2010
HM Revenue and Customs is investigating whether to deduct tax, pay-check by pay-check under plans to reform the PAYE system, The Daily Telegraph reports.
Under the system, monthly payments would go through HMRC with workers being handed the net salary. Accountants, lawyers and businesses are being consulted according to the Telegraph, which follows revelations millions of tax payers had over or underpaid tax..
The system may end the practice of receiving pay slips, with employers reliant on HMRC to make deductions.
Further Reading:
HMRC could take direct control of pay cheques after tax errors
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Visitor comments Add your comment
Make HMRC the Paymaster
It sounds attractive...NOT!
Just look at how many existing payroll administrators there are in the UK and now move them all to HMRC still doing their jobs and being paid by HMRC.
I thought this government was about smaller government not BIG government.
The alternative of everyone lodging annual income tax returns would also be resource intensive for HMRC but probably less costly and less error prone.
Posted by: Peter Morris, 07 Sep 2010 | 00:00
Benefit of the doubt
HMRC should be able to calculate taxes a lot more efficiently than all the individual payroll employees are at the moment.
Also, if they don't charge a fee for this, then it basically means companies don't have to spend as much on administering wages.
Basically, it has the potential to be a good move. My fingers are crossed.
Posted by: Alex, 07 Sep 2010 | 00:00
Recipe for disater
Given how many mistakes HMRC make and the long delays which seem to occur when HMRC becomes involved in anything, I think this is a recipe for disaster. As for not receiving payslips any more, how will employees be able to check their pay, both income and deductions? I regularly find errors on client and family payslips.
Posted by: Angela Williams, 08 Sep 2010 | 00:00
HMRC lunacy.
What a nightmare scenario. Would anyone ever get their pay ? With no payslips, how would we check the pay is right ?
What utterly ridiculous nonsense. This really is the lunatics taking over the asylum.
Posted by: John Brown, 09 Sep 2010 | 00:00
Heaven forbid!
On what basis is it thought the revenue could get right millions of weekly/monthly pay cheques if they can't get it right once a year?
Plus, how secure is the HMRC computer system?
I dread the thought of this happening.
Strictly a personal view.
Posted by: Alan Dietz, 09 Sep 2010 | 00:00