PAYE RTI News
Report on RTI cost savings withdrawn over dispute on figures
November 19, 2014
In an exclusive report, Payroll World revealed that a Tax Information and Impact Note (TIIN) on the savings from RTI has had to be withdrawn for further review after questions were raised about the figures it contained. The report was going to be presented to members of the government, but the figures in the report were disputed by payroll stakeholders. According to the payroll magazine site, the report “attributed large employer cost savings to the simplified RTI end of year process, among other things”. However stakeholders “strongly criticised HMRC’s method of calculation” and questioned whether the amounts reported represented accurately the savings to employers, which have been seen by many to be insignificant.
Speaking to Payroll World, HMRC said that a revised TIIN would be available “in due course”, and that they were “continuing to review the costs and benefits of RTI, taking into account the first full end of year experience customer research and employers’ and stakeholders’ views.” HMRC originally forecast cost savings of around £300 million from the reduction in administrative burdens following the introduction of RTI, but no definitive independent evidence on such savings to employers and payroll agents has yet been produced.comments powered by Disqus