Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/17/2012

United Kingdom - Real time information reporting by employers, pensions 

July 17:  A proposed change to the PAYE system—“real time information” (RTI) reporting—would require all employers and pension providers to inform HM Revenue & Customs about salary details, income tax, national insurance contributions, expenses, and other deductions when or before the payments are made—instead of waiting until after the end of the tax year.

The RTI system is intended to support the introduction of universal tax credits, which will rely upon up-to-date real time information about pay and benefits. The UK government’s plan is for all employers to be using RTI reporting by October 2013.


On 12 July 2012, the All-Party Parliamentary Taxation Group issued a white paper recommending a delay to the implementation of RTI reporting for PAYE. Despite this recommendation, tax professionals in the UK have stated that they believe that a delay in implementation of the RTI system is unlikely.


The KPMG member firm in the UK has prepared a RTI readiness survey to assist those who will potentially be affected by the new RTI system.




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