PAYE regime
The measure
The Government has stated its intention to carry out a consultation into mechanisms to support more frequent or real time processing of PAYE data. The Government is looking for ways to reduce costs and make the system easier for employers and HMRC to administer.
Who will be affected?
Employers and payroll providers will be consulted.
When?
The consultation is intended to take place this summer.
In general, we support any reduction in the burden to business of administering the tax regime. However, it is difficult to see any material savings to business unless responsibility to calculate taxable amounts is transferred to a central processing system, rather than that system being responsible only for processing payments. However, this would be a huge change and would need to be very carefully considered. As with other initiatives currently being evaluated, such as the payrolling of benefits in kind, it could be some time before any proposals emerge from this consultation.
