Important admin burden announcements for employers and agents
18 December 2014
HMRC have issued a revised Tax Information and Impact Note setting out new figures for the costs and benefits from the introduction of RTI. To coincide with this, correspondence has been published by the Administrative Burdens Advisory Board (ABAB) setting out some important agreements with Government.
The revised RTI note and exchange of letters published by ABAB together highlight:
Revisions to HMRC’s figures reflecting the costs and benefits attributable to the introduction of real time information. HMRC acknowledge the representations and evidence provided by ABAB members in increasing the figures previously calculated for costs and reducing those for benefits. Acknowledgement by HMRC of some important lessons for the future about the way customer evidence is built into estimates of costs and benefits. CIPP comment The CIPP’s Karen Thomson is a member of the Admin Burdens Advisory Board (ABAB) and has welcomed involvement in looking at the actual cost and admin burden savings for RTI. The CIPP agrees with ABAB’s comments and recommendations and looks forward to continuing to work with HMRC in this area.
HMRC publish customer experience research about the migration to RTI
18 December 2014
New research published by HMRC focuses on employers’ experience of the end of the first full year of national implementation of RTI. The research was conducted in June, July and August 2014.
The report explains that the research was designed to explore issues of interest to HMRC and to look in more depth at any problems employers had experienced.
According to the report, two thirds of employers found it easy to deal with PAYE in real time, with 29% rating it ‘very easy’ to deal with and a further 38% ‘fairly easy’. On the other hand, a third of employers (34%) mentioned at least one downside of RTI, with inflexible timings and additional costs being the downsides mentioned most often.
HMRC agree much requested simplification to the year end process
19 December 2014
HMRC are proposing a revision to secondary legislation that should significantly lighten the load for Payroll Bureaux and Agents and Employers alike at the tax year end.
The proposed revision looks to amend PAYE regulations so as to remove mandation for completing the “seven questions” checklist when making the final Full Payment Submission. This change is expected to take effect from 6 March 2015, and should thus avoid the need to complete this checklist for the tax year 2014-15. HMRC have said that from 6 March 2015 they will accept a final FPS or EPS for 2014-15 and 2015-16 with or without a completed checklist (software data items 111 to 117). Employers should still report the Final Submission for Year indicator (data item 109).
CIPP Policy News Journal
08/04/2015, Page 320 of 521
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