Alternative to self-assessment offered
The Inland Revenue has dismissed newspaper reports that it is introducing a new tax on pay packets as 'nonsense' saying it spares one million tax-payers having to complete self-assessment forms instead.
The reforms, which offer self assessment taxpayers, the Pay-As-You-Earn option instead, are intended to reduce the administrative burden on the Revenue and make life easier for taxpayers.
Each year one million fail to meet the self assessment deadline and incur a £100 fine as a result.
John Whiting, tax partner at PricewaterhouseCoopers, told the Financial Times: ‘At the end of the day, you would still be paying the same amount of tax, you’re just paying it a bit earlier.’