Commenting on today’s white paper from the All-Party Parliamentary Taxation Group, “PAYE at the Crossroads” which recommends a delay to the implementation of real time information reporting for PAYE, KPMG director, Steve Wade, said:
“The chance of a delay to the introduction Real Time Information reporting (‘RTI’) for PAYE is slim to non-existent in our view, despite the all-party parliamentary taxation group recommending postponing it to 2015 today in their publication ‘PAYE at the Crossroads’. The last thing businesses should do is assume that they will get more time and thus put their planning on hold. Our understanding is that HMRC remains determined to introduce RTI in April 2013 as originally planned.
“Under RTI, employers will need to report details of payments to staff to the tax authorities as and when they are made. This is the biggest change to the PAYE system since it was introduced in 1944 and will represent a significant payroll challenge to many employers. Fortunately there is a pilot underway and we believe that the majority of larger businesses have started to plan for RTI. Starting to plan is not always the same as taking concrete steps towards implementation however and most businesses have a way to go in order to be prepared for RTI’s introduction.”