| A major change to the way
that employers submit information on tax
and national insurance for their employees
is to begin next year with a pilot
programme. Following consultation on
Real Time Information (RTI) – under which
employers will report tax and national
insurance deductions at the same time as
they pay their employees, rather than at
year end, via an annual P35 – the pilot
will begin in April 2012 with volunteer
software developers and employers.
Subject to successful completion of the
pilot, employers will be required to start
using the RTI system from April 2013, with
all employers using RTI by October 2013.
HM Revenue & Customs (HMRC) announced
on 23 November that it already has 300
volunteer employers for the pilot and,
through software developers, is looking to
recruit up to 1,300 more to join in July
next year and a further 250,000 from
November 2012, depending on the results of
the first phase of the pilot.
David Gauke, Exchequer Secretary to the
Treasury, said: "We need a PAYE system
that can meet the demands of the 21st
century workplace.
“Real Time Information will support
improvements to the PAYE system making it
more accurate for taxpayers and easier for
employers and HMRC to administer.”
LINKS:
HMRC information on RTI
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