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HMRC set to announce new online pilot to support PAYE

June 20, 2013


Payroll World, the leading UK payroll affairs website, has reported that HMRC will announce its intention to pilot an online service for individual taxpayers in PAYE before the end of the year.  The new service will allow users to report any changes to their personal circumstances which may affect their tax code over the internet.  This service is already available to those who are currently registered for Self-Assessment Online and have a secure log in for the Government Gateway. The new initiative will not change the employer’s obligation to notify details of individuals’ personal tax position arising from their employment.

HMRC’s website currently advises individuals to telephone, email or write to HMRC if they need to report changes which could affect tax, such as a change in name, address or marital status or an intention to become self-employed.  The new online service would allow, according to an unnamed HMRC spokesman changes like benefits in kind to be reported.  This in turn could lead to tax codes being updated, and hopefully would support PAYE RTI as employee information would be updated more frequently, helping to improve accuracy.

The HMRC spokesman went on to say that individuals with “complex tax affairs” or those who are self-employed may still be asked to fill in a Self-Assessment tax return.  The duties of employers will be unaffected by the introduction of the new user interface.

It remains to be seen what the scale of the new project will be, and whether it comes in response to concerns raised by many about the difficulties of reporting changes in employment flexibly within existing RTI parameters. As have reported HMRC’s new RTI systems are not able reliably to capture the benefits in kind associated with some individual employee employment records identified by real time reporting.

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