TaxPersonal TaxTaxation – 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

LITRG urges government to consider tax changes in disability work plan

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

5d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

3w 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

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

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

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

5m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter