it easier and quicker for businesses to deal with the tax authorities using online services as the norm and from 2013 to only use Registration Wizard to tell HMRC online when they start their business activity for the purposes of Self Assessment and Corporation Tax. Employers will also be expected to use the online channel to obtain their PAYE scheme number and to ensure that they can operate PAYE accurately from the first pay day. HMRC committed to consult fully on these changes, and have recently issued a consultation document asking for customer opinions on Digital by Default. The Policy team has created a survey based on the consultation document and would be very grateful if you could spare around ten minutes to complete the survey which closes on 3 October. HMRC's Software Development Support Team have also provided further information which can be found in the icons at the end of this CIPP news item . 11 October 2011 Thank you to all those members who responded to the Policy team's survey on the Digital by Default consultation . The CIPP Policy team have formally responded to the consultation, a copy of which is available for members to view by clicking the link below. CIPP response to Digital by Default consultation DIGITAL BY DEFAULT CIPP CONSULTATION RESPONSE As you will know HMRC has for some years been moving more and more of its services to delivery by digital and online channels including implementing Lord Carter of Coles’ 2006 Report. The Digital by Default consultation was launched in August 2011 to obtain views on making One Click’s Online Tax Registration Service (OTRS - Registration Wizard) the digital by default channel to get set up for the main direct business taxes - Corporation Tax, Income Tax Self Assessment/Class 2 NICs and PAYE. From April 2012, businesses will be able to get set up for the main business taxes using a single, interactive online facility, the Online Tax Registration Service (OTRS). From 2013 the OTRS will be the default method for businesses to notify HMRC when they potentially become liable to tax (and Class 2 NICs). From a payroll perspective, the consultation document focused mainly on de-registering for PAYE and the Policy team surveyed members last September on the concept of a Wizard for both Registration and De-registration. The majority of members who responded to the survey did not believe that HMRC should make it mandatory for employers to register using the Registration Wizard. In the main they agreed with the HMRC suggestion that a non- statutory approach would work best, publicising the digital choice for employers wishing to register a new PAYE scheme. CIPP response to Digital by Default consultation HMRC Next Steps DIGITAL BY DEFAULT CONSULTATION RESPONSE 9 March 2012 HMRC have published their response to the Digital by Default consultation.
CIPP Policy News Journal
09/10/2012, Page 95 of 234
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