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PAYE REFORMS ‘BEING RUSHED’

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Expert tax advisors have warned the government that impending PAYE reforms are being ‘rushed’ and businesses will suffer as a result.

The Chartered Institute of Taxation (CIOT) expressed concern that HM Revenue & Custom’s (HMRC) large-scale IT reforms will greatly affect employers and employees across the UK.

The CIOT’s comments come in response to a Government consultation on plans to require employers to submit Pay As You Earn (PAYE) information to HMRC in real time, electronically.

The reforms are pencilled in for April 2012 but the CIOT believes that this is too short a timescale in which to develop, test and evaluate both HMRC’s systems and those of employers.

“This project has potential – but it also has the potential to go horribly wrong and, if this happens, the impact on business will be huge,” said Anthony Thomas, CIOT Deputy President.

“HMRC’s record of managing big IT projects is not good, and if they insist on rushing this reform through then it will look to many people like an accident waiting to happen.

Mr Thomas expressed particular concern that the apparently short timeframe will “lead to significant administrative burdens for employers” and unnecessary uncertainty for millions of employees.

“It is vital that there are proper security safeguards to ensure individuals’ personal information, such as bank account details, are not transmitted as well, and I am very concerned about this aspect too,” he added.

The Government has argued that reforms will provide financial and time saving benefits to HMRC, the Department of Work & Pensions, employers and employees.

For more on the reforms and how they will affect your business, contact our experts today.

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Written by Andrew Hodges

March 12, 2011 at 3:11 pm

Posted in Comment, LinkedIn

Tagged with , ,

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