Taxman drops PAYE pooling plans

by Calum Fuller

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10 Aug 2012

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PLANS TO INTRODUCE PAYE POOLING have been shelved by the taxman after a consultation period.

The proposed changes would have allowed organisations containing several entities to be treated as one for PAYE purposes, in order to alleviate the administrative burden caused by several PAYE references.

However, having consulted on the changes, the legislative changes will not be made during the introduction of PAYE real-time information.

HM Revenue & Customs has allowed employers that participated in a pilot to continue to pool their payroll, but new applications will not be accepted.

The consultation paper was released on 24 October 2011 and ran until 15 December 2011. The department says it will continue to monitor pooling after the introduction of real-time information, which itself is still under pilot.

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