HM REVENUE & CUSTOMS claims it has listened to the concerns and revised the implementation timetable of new PAYE technology. But in my opinion, it's not much of a revision and more half-a-job.

The taxman wants to create technology for businesses to submit real-time PAYE information on all employees. Eventually there will be no need for printed p60s or p45s - which to me is only a good thing.

However, software and banking representatives were crying out for an extension to a very tight deadline set by HMRC, which didn't allow a full tax year to pilot the new system.

The taxman claims it has now revised the timetable so existing technology can be updated rather than phased out immediately as previously stated.

A computer-to-computer transmission service known as EDI (used by lots of UK companies) was due to be put down in October 2013. BACS, and the internet, were going to be the only methods of sending PAYE data to the taxman.

Now HMRC has extended EDI's lifetime until at least 2014, if it is updated. But companies will have to move to BACS or the internet at a later date.

So to get this straight...

That's sort of like saying to people you can either spend money giving your current car a spray job, and buy a new one in a year or so; or you can buy a new car now, which hasn't been properly road-tested. Either way you'll probably be out of pocket, and hoping you've made the right choice.

SO THE GOVERNMENT has decided in its effort to reduce red tape for businesses it is going to change Pay As You Earn (PAYE) technology.

Apparently printed P45s and P60s will cease to exist in the future. Employees will instead have individual online technology profiles, which can be updated by both employers and the taxman, in theory delivering real-time information.

However, it seems the timescale of this implementation is already going askew.

Similar to the introduction of new online tax technology, iXBRL, the institutes are rallying for a delay to implementation - although no delay was granted for iXBRL.

The government's schedule will see HM Revenue & Customs supplying software suppliers such as Capgemini with data information to build the systems by the end of the month. In just a year's time volunteer employers will test the system. Then eight months later in January 2013 the system will be mandated and all companies will have to use them.

Eight months?

If, in this short timeframe, there are teething problems with the software they will have to be reworked and retested before the deadline. As this is an introduction to a new and unfamiliar way of filing PAYE, not to mention unchartered technology, eight months seems too little time to me, and several other bodies including BASDA, CIoT and ICAS.

With iXBRL's introduction this year, HMRC is offering to go easy on companies for the first two years. During this time if there are incorrect tax submissions, or mistakes, because of software, HMRC will refrain from issuing penalties.

What will they do for PAYE which also has brand new technology and an even tighter schedule?