Experts caution over PAYE changes
PWC say that drastic changes to the way employers and HMRC handle payslip data could prove problematic for employers.
From October 2013 all employers must use a new system, which will see payslip data on tax, NIC and other deductions transmitted to HMRC at the time employees are paid.
PwC says it welcomes the modernisation of the PAYE model, which should also help prevent tax code errors.
It warns, however, that the tight timescale for the changes could cause problems for some employers.
Richard Farnsworth, director and tax expert at PwC in the East Midlands, said: "The modernisation of PAYE is long overdue.
"However, the scale and timing for change could pose problems. Real time information will see employers gathering and transmitting considerable volumes of data, beyond what is already on the payroll system. Timescales are incredibly tight for getting the processes in place across the many parties involved, let alone dealing with training and communications.
"All this will be happening when many employers are grappling with the challenges of automatic pension scheme enrolment."
For more information please call Dave Connolly in the payroll department of McEwan Wallace Chartered Accountants on 0151 666 5940 or email enquiries@wallace.co.uk
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