New Tougher Rules For HMRC.....

Sept. 18, 2012 - PRLog -- HMRC is planning changes to the PAYE system that should help them identify underpayment much quicker.
Under the present system, until a P35 is filed (due by 19th May following the tax year) HMRC does not know the extent of any liabilities and this system allows time for businesses to catch up with a PAYE liability during a year or delays any collection process commencing.
Under the new system, HMRC will monitor payments by having employers file staff wage details as real-time information (RTI) when they are paid. This will allow HMRC to know how much PAYE is due by the employer each month.
Pilot schemes are presently underway and it expected to be operational from April 2013. A deadline has been set for all firms to be using it by October 2013.
There will be no longer any room for employers to manoeuvre with their PAYE payments. This is bound to accelerate difficulties for struggling businesses and mean they have to start a dialogue with HMRC early if there are arrears of PAYE.
Once again, HMRC are putting a burden on business. But speedier identification of arrears may help those businesses that are going through a temporary cash flow problem and force long term struggling companies into insolvency earlier – which for the overall good of the economy is not a bad thing in the long run. No one gains by companies being allowed to continue to trade only by the fact that they are using unpaid PAYE as their working capital.

Written by Tim Corfield

http://www.griffinandking.co.uk