Taxation – Fears over PAYE data security

Taxation - Fears over PAYE data security

Tax experts this week raised serious security concerns over Inland Revenue proposals for the electronic transfer of sensitive employee information.

Draft regulations published last week in the finance bill allowed employers to send PAYE information, such as employee benefits, to the Revenue electronically. This could be done via a floppy disk or by using electronic data interchange.

But Inez Anderson, tax partner at KPMG’s human resources solutions group, said: ‘The Revenue does not appear to have fully addressed the security issues involved.

How will they ensure the data is not tampered with after transmission?’

Anderson claimed the Revenue, which was unavailable for comment, needed to develop a secure electronic signature system to ensure submitted forms were properly signed and dated.

‘The main issue is the public’s perception of how secure it is. People will only use a system they can trust,’ said Chris Phillips, marketing director for JCP, an information security software supplier.

He added that a bank or post office could act as a Trusted Third Party and issue electronic signature software to guarantee the identity of each party during a transaction.

Related Articles

Supreme Court rules against Pimlico Plumbers in landmark employment case

Legal Supreme Court rules against Pimlico Plumbers in landmark employment case

1m Alia Shoaib, Reporter
Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3m Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

4m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

6m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

7m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

8m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

9m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

9m Emma Rawson, ATT Technical Officer