A PILOT for real-time PAYE information (RTI) has begun, with the first ten volunteer employers – including HMRC – submitting their RTI return.
It is hoped RTI will make it easier for employers, pension providers and HMRC to administer PAYE. real time tax information will allow employers and pension providers to inform HMRC of PAYE payments as they are made, instead of at the end of every year.
If successful, most employers will join the regime in April 2013 and all employers will be using it by October 2013.
David Gauke, exchequer secretary, said: “RTI will ensure that the PAYE system meets the needs of the 21st century. It will improve the service to taxpayers by making it easier to ensure that people pay the right tax after a change of job.
“HMRC is committed to a smooth and on-time transition. The start of the pilot today demonstrates that RTI is on track.
“RTI will remove administrative burdens of £300m a year from employers, mainly from the abolition of the end-of-year PAYE returns process – the biggest single contribution that any tax change could make.”
Richard Le Tocq, head of Locate Guernsey, discusses the chancellor’s approach to high net worth individuals, and why relocation is increasingly attractive to HNWIs
MTD represents 'the single most significant change to the UK’s system of taxation in recent times', says Knill James partner Nick Rawson. So, how prepared are SMEs for digital tax reporting?
The firm says that the U-turn 'does not alter the need for a fundamental review of the way we tax work' and that the current tax system is in need of reform
Legislation on the NICs changes to be brought forward in the autumn following publication of 'the full effects of the changes to Class 2 and Class 4' in the summer