HMRC have published a consultation that proposes that every employee be given a single computerised tax account, which will combine employment and NI records. HMRC will then have real time information on all of the payments made.
HMRC want the new system to be running within the lifetime of the current government.
However, given HMRC's track record wrt IT implementation, not everyone is convinced that this will happen according to plan/timeframe.
Accountancy Age quote, Lesley Fidler, tax director at Baker Tilly:
"While it is important that there be aspirational goals for our tax system, HMRC does not have a strong record of implementing IT projects.
Anyone who was involved with the short-lived attempt at paying tax credits via the payroll will hope that this fresh initiative will be fully researched, adequately piloted and sufficiently funded before it goes live."
Given the proposed cuts in government expenditure, and HMRC's past track record wrt IT projects I am inclined to agree with Ms Fidler that this may be an aspiration that is a "tad overoptimistic".
Tax does have to be taxing.
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