You are here: Home - Household Bills - News -

HMRC measures could put business reputations at risk

0
Written by:
07/09/2012
HMRC has come under fire for putting in place tax requirements that could damage the reputations of businesses that lack the means to file electronically.

Under the Revenue’s ‘Real Time Regulation’ (RTI) requirements, information about tax and other deductions under the Pay As You Earn (PAYE) system is required to be transmitted to HMRC by the employer on or before each time an employee is paid – even if this is daily or at irregular times.

Tax campaigners have highlighted that RTI penalties being used as a revenue raiser for HMRC is of major concern.

Anthony Thomas, chairman at campaign group LITRG, said: “The requirement to provide PAYE information in ‘real time’ will lead to substantial difficulties for many small employers. Penalties for those who fail to comply must be proportionate and the penalty framework simple.

“The regime must give employers time to get used to the obligations of RTI and this is likely to take a minimum of two years. It is vital that no penalties are charged at all in the first year and HMRC should adopt a ‘light touch’ approach to the application of penalties in the following year.

HMRC began piloting RTI in April this year, with a group of around a dozen employers who volunteered to take part in an initial pilot.

All employers will be required to submit information using RTI by October 2013.

Campaigners also state that an overly aggressive penalty regime for late filing could lead to employers submitting less accurate returns.

Thomas added: “Special consideration must be given to those who are ‘digitally excluded’. HMRC need to provide more information about how they will deal with the small number of employers who will be allowed to submit RTI ‘returns’ on paper.

“In addition to these employers, we are concerned that there are other genuinely digitally excluded employers, who, despite help from HMRC’s ‘Assisted Digital’ package, might still fail to get online. Penalising these people would achieve nothing bar encourage other non-compliance and result in reputational damage for HMRC.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2203769-antonio-horta-osorio
Lloyds boss tells banks to be ‘boring’

Banks need to become ‘simple and boring’ if they want to restore public trust in the sector, according to the...

Close