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Improving PAYE: comments invited

HMRC is inviting comments by 23 September on proposals to improve the operation of the PAYE system by collecting 'real time information'.

HMRC is inviting comments by 23 September on proposals to improve the operation of the PAYE system by collecting 'real time information'.

In the longer term responsibility for calculating deductions would pass to HMRC under a system of 'centralised deductions'. PKF partner Philip Fisher said employers would ‘send the gross payments to the central calculator which would allocate part to the employee and the remainder to HMRC’.

Writing in Tax Journal last month Fisher added: ‘It follows that if an employee believes they were receiving the wrong pay rather than haranguing the payroll department they would need to contact HMRC an organisation renowned for its inability to answer the phone.’

The consultation paper is available via www.lexisurl.com/kOs2e. Other consultations...

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