Fix PAYE or risk ‘grave’ consequences, says tax reform group

FAILURE TO deal with problems surrounding PAYE administration before the introduction of a new tax system could bring “grave” consequences, according to a warning from the Low Income Tax Reform Group.

In a statement for Investor Today, the group’s chairman John Andrews said: “The new system will be relied upon to determine not only an employee’s tax liability but also their universal credit entitlement.

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

A recent report from the National Audit Office said the PAYE system would not be stabilised until 2013.

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