HMRC recently announced the addition of a further 310 employer schemes to its Real Time Information (RTI) pilot, launched last month.
Allegedly, RTI will make it easier for employers, pension providers and HMRC to administer the pay-as-you-earn (PAYE) system. Under the new arrangements, employers and pension providers will tell HMRC about PAYE payments at the time they are made, as opposed to only at the end of the year as at present.
HMRC claims that it has so far successfully received over 100,000 employee records from 10 volunteer employers. The additional 310 employers are set to join the pilot between May 8 and the end of June.
Stephen Banyard, Acting Director General for Personal Tax at HMRC, is quoted by Tax-News:
“It’s early days, but all the signs are good. RTI is on track - all expected PAYE submissions have been received from the 10 pilot employers and processed.That's great so far, apparently!
The whole point of the pilot is to identify any implementation issues. So far, these have been very few and they have been quickly resolved.
We are working closely with the employers in the pilot who have helped us identify and solve any issues. We have improved our guidance and support for employers and software vendors as a result of the insight and feedback gained.
We are very grateful for the valuable contribution the pilot employers and software developers have made."
However, according to a comment on FreeAgent.com, HMRC appear to be a tad selective with whom to pilot RTI:
"I spoke to HMRC about testing RTI in pilot phase for biz with 0-9 employees.It looks like the interests and input of/from micro businesses are being ignored.
They were only interested in piloting with those who had substantial payroll & existing systems.
Comments and opinions are, as ever, very welcome.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
What is TAXWISE?
TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Taxwise
Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.
Click the link to read about: Tax Investigation for Dummies
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"