Limited time left for PAYE consultation

31 August 2010

Employers have only a few weeks remaining in which to share their views with HM Revenue and Customs (HMRC) on possible changes to the PAYE system.

The government is looking to update the system and to reduce admin costs for businesses, and is seeking input from employers.

However, the consultation is due to close on 23 September.

Launching the consultation, David Gauke, the Treasury Secretary, said: "The PAYE system needs to respond better to the circumstances of the individual taxpayer because only in this way will we be able to reduce errors and provide taxpayers with the clearest picture possible of their tax and allowances.

"We also need a PAYE system that reduces the burden on employers."

At the moment, responsibility for administering the system lies with employers, who deduct employees' income tax and NICs at source.

A real time system could see a programme whereby tax and NICs are automatically taken from employees' gross pay as it enters their bank accounts.

If there is a good response to the consultation, HMRC has said, there may be a second consultation of proposals in the autumn.

Details of the consultation can be found at HMRC's website.