A PILOT for real-time PAYE information (RTI) has begun, with the first ten volunteer employers - including HMRC - submitting their RTI return.
It is hoped RTI will make it easier for employers, pension providers and HMRC to administer PAYE. real time tax information will allow employers and pension providers to inform HMRC of PAYE payments as they are made, instead of at the end of every year.
If successful, most employers will join the regime in April 2013 and all employers will be using it by October 2013.
David Gauke, exchequer secretary, said: "RTI will ensure that the PAYE system meets the needs of the 21st century. It will improve the service to taxpayers by making it easier to ensure that people pay the right tax after a change of job.
"HMRC is committed to a smooth and on-time transition. The start of the pilot today demonstrates that RTI is on track.
"RTI will remove administrative burdens of £300m a year from employers, mainly from the abolition of the end-of-year PAYE returns process - the biggest single contribution that any tax change could make."
I am very nervous about this. I do hope i am wrong, but I expect it to be an extra burden for small employers.
Are there any small employers in the pilot?
Posted by: Chris, 12 Apr 2012 | 11:49
Yet another administrative burden put onto Employers to add to the monthly cycle of CIS, Intrastat, EEC Sales list etc. etc. Let's all be real about this - it's not about the saving to the Employer, it's more about how much HMRC can save in their own costs and make their own lives easier. I am waiting for the next logical step for HMRC to take and that is to impose penalties on those companies who do not make these returns on time or am I being totally cynical?
Posted by: Alek , 11 May 2012 | 14:57
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.