The government is to suspend its rollout of simple assessment and real-time changes to PAYE tax codes, owing to problems encountered with both projects.
The government is to suspend its rollout of simple assessment and real-time changes to PAYE tax codes, owing to problems encountered with both projects.
Simple assessment began in 2016/17, using information HMRC already holds to produce income tax calculations for certain groups of taxpayers, rather than requiring the submission of a self-assessment tax return. However, inaccuracies have come to light in the information HMRC has used. Taxpayers already in simple assessment will remain, but rollout to further groups of taxpayers has been delayed indefinitely.
HMRC began ‘dynamic coding’ in July 2017, using monthly RTI data provided by employers to make automatic in-year adjustments to PAYE codes. This has caused some employees paid a bonus early in the tax year, or who have uneven earnings, to receive incorrect tax codes.
The decision to pause these two projects was announced on 30 April at a hearing of the public accounts committee to examine HMRC’s performance and later confirmed to the professional bodies.
Yvette Nunn of the ATT commented: ‘Given the unprecedented changes which will result from Brexit, it is only sensible that HMRC seek to reprioritise their work.’
The government is to suspend its rollout of simple assessment and real-time changes to PAYE tax codes, owing to problems encountered with both projects.
The government is to suspend its rollout of simple assessment and real-time changes to PAYE tax codes, owing to problems encountered with both projects.
Simple assessment began in 2016/17, using information HMRC already holds to produce income tax calculations for certain groups of taxpayers, rather than requiring the submission of a self-assessment tax return. However, inaccuracies have come to light in the information HMRC has used. Taxpayers already in simple assessment will remain, but rollout to further groups of taxpayers has been delayed indefinitely.
HMRC began ‘dynamic coding’ in July 2017, using monthly RTI data provided by employers to make automatic in-year adjustments to PAYE codes. This has caused some employees paid a bonus early in the tax year, or who have uneven earnings, to receive incorrect tax codes.
The decision to pause these two projects was announced on 30 April at a hearing of the public accounts committee to examine HMRC’s performance and later confirmed to the professional bodies.
Yvette Nunn of the ATT commented: ‘Given the unprecedented changes which will result from Brexit, it is only sensible that HMRC seek to reprioritise their work.’
