Impending Changes To PAYE: How will they affect you?
August 30, 20112013 will bring changes to the PAYE system; a system hat has been pretty much the same since 1944. HMRC will take the role of calculating tax for businesses. The main implications of this will be the increased filing requirements, so the HMRC will have enough information in order for calculations to be done as accurately as possible. The filling will be done via a new system called Real Time Information (RTI), so the HMRC can have the information come in Real Time via the internet.
The new system may lead to administrative time & cost savings to businesses. But may also bring an end to the payslip system; which allows employees to view their gross, net pay as well as their tax deductions and thereby errors (if any) could be resolved.
Currently, HMRC are still in the planning stages and are urging businesses and software developers who are interested, to get involved. Implementation of RTI and other changes will come into effect as of April 2013, with full integration of the changes in by October 2o13.
If you have any questions about PAYE and how these changes will affect your business in particular; please contact us. Be in the know, gain peace of mind!
