Sort out PAYE before new system starts, warns lobby group

THERE WILL BE “grave consequences” from failing to address PAYE problems before real-time tax filing is introduced, warns the Low Income Tax Reform Group.

The Taxman has been battling to resolve a series of under- and over-payments relating to PAYE but also plans to introduce a more up-to-date PAYE system for employers from 2013.

“It will be essential for all old disputes and PAYE data problems to be out of the way by the time real-time information comes on stream,” said LITRG chairman John Andrews.

He continued: “Any unresolved problems could have grave consequences for the unrepresented on low incomes and make the universal credit delivery fraught with difficulty.”

The LITRG also cited the recent NAO report into HMRC, which warned that increased volume of taxpayer records in tandem with reducing departmental staff could adversely affect the accuracy of PAYE codes.

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