HMRC IS “RUSHING” through proposed changes to pay as you earn (PAYE) systems, the Chartered Institute of Taxation has claimed.
The intended reforms will require employers to submit PAYE information to the taxman in real-time. HMRC hopes to inform software developers of data requirements by 31 March 2011, with volunteer employers testing the system in April 2012.
Large employers will then be required to use the new system from January 2013.
Anthony Thomas, CIoT deputy president said: “HMRC’s record of managing big IT projects is not good, and if they insist on rushing this reform through then it will look to many people like an accident waiting to happen.
“We are particularly concerned that the short timeframe in which RTI (real-time information) is being introduced will lead to significant administrative burdens for employers and uncertainty for employees.”
The CIoT is also concerned that security issues are not being properly addressed by HMRC.
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