Policy News Journal - 2011-2012

The committee recognised that the Department performs a crucial role and operates under significant external pressures including continuing resource reductions, deficiencies in tax legislation and the legacy of the merger. It acknowledged the commitment of management to tackling these problems and the dedication and professionalism of HMRC staff. However, it concluded that the Department has a difficult few years ahead of it, as it attempts to improve its service to taxpayers and benefits claimants, stabilise the PAYE system and introduce Real-time information. The sub-committee is holding further hearings on HMRC's compliance work, and the committee may report on this later in the year. Read the full report 3 August 2011 From 1 October 2011, HMRC is introducing a new Enhanced Recognition Scheme that will replace the two existing payroll software schemes; the Payroll Standard Accreditation scheme and the Online Filing Recognition scheme. The new Scheme is aimed at all Payroll Software Developers and will combine elements from both of the existing schemes and allow HMRC to work with a broader range of software developers and payroll software products. Background In order to bring PAYE into line with the approach taken for other on-line services, the Payroll Standard Accreditation Scheme will be replaced with a new Enhanced Recognition Scheme, which will commence on 1 October 2011. The specific details of the Enhanced Recognition Scheme, are currently being documented, but the new recognition service will not only check the structure/format of all on-line files, it will also examine the payroll values produced by the software product. The existing Payroll Standard Accreditation Scheme will formally cease on 5 April 2012. All developers, that currently have accredited products, will be contacted individually regarding renewal of their accreditations up to Payroll Accreditation end date on 5 April 2012. Developers currently going through the accreditation process for the first time, or developers submitting new applications, can continue to acquire accreditation up to 5 April 2012, as long as they complete the process by 31 August 2011. HMRC SDST will contact individual Developers currently going through the process, to discuss the position. From 1 October 2011, the introduction of the Enhanced Recognition Scheme will allow HMRC SDST to take a more flexible approach to testing and enable contact and support across all payroll software developers, not just those with previously accredited products. SDST will check the functionality included in the software, but will not be enforcing the same minimum standard of functionality as the Payroll Accreditation Standard. Further details about the new Enhanced Recognition scheme will be sent to Software Developers in August 2011. Further information can be obtained by contacting SDSteam@hmrc.gsi.gov.uk . HMRC NEW ENHANCED RECOGNITION SCHEME

CIPP Policy survey

20 October 2011 On 1 October 2011, HMRC introduced a new PAYE Recognition Scheme aimed at all Payroll Software Developers which has replaced the two existing Payroll Software schemes:

CIPP Policy News Journal

09/10/2012, Page 85 of 234

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