The taxman seeks views on real-time information

A CONSULTATION DOCUMENT has been released by HM Revenue & Customs detailing how real-time information for PAYE could work for employers and aims to deter non-compliance.

The taxman is seeking views from employers on how it can help them understand and comply with future requirements to file PAYE data in real time. It is also seeking advice on how best to construct and administer penalties for late filing and late payment.

The real-time information (RTI) pilot was launched in April, initially with ten employers including HMRC. In May, more employers were added, with a further group to join at the end of June, bringing the total to 320 employers.

The aim of the measures is to update PAYE records as and when changes occur, rather than once at the end of every tax year.

Stephen Banyard, acting director-general for personal tax, said the Revenue wants “RTI returns, not penalties”.

He said: “The aim is to encourage all employers to comply by making it as easy as possible for them to do so. We are working with employers and the payroll industry in our 12-month pilot to best achieve that.

“But penalties are necessary to deter the minority who don’t want to play by the rules. And to reassure those who do file and pay on time that non-compliance is being tackled.

“Getting the support and penalty system right for RTI is vitally important. We value the views of employers, payroll providers, pension scheme administrators, agents and anyone else with an interest in PAYE, and we want to hear from them.”