Replies
wow, this would save an awful lot of time and worry.
I know how much time this would save me in my business ( www.specialistmats.co.uk )and if you think about multiplying that across all busnesses the time saved in PAYE admin is mind blowing!
Reply by Graham Simmonds on 25/02/2010 at 07:58
On the face of it, this looks like it would reduce the burden on small businesses - however what extra burden would this put on the individual when the system failed? Would those individuals have the skills to solve the issues? Would the employer then have disaffected employees? Most importantly is the system robust enough to manage this without many mistakes?
Reply by andrewstagg on 25/02/2010 at 09:03
The idea that HMRC would be able to deliver a system which deducted the correct amount of Tax and NI without the experience and expertise of those who currently operate PAYE is very doubtful.
HMRC currently have 116 million NI Payments which have been deducted from employees, but which HMRC can not attribute to the Individual who actually made the payment.
HMRC need to help and support all those involved in Payroll, by simplyfying the cumbersome processes involved.
The idea of another computer black box to replace each individual involved in Payroll, because that is the only way the £5.5 billion savings suggested by the Conservatives can be made, is very worrying.
I can see no reason to sack everyone involved in Payroll and rely on a failing organisation to provide the same service.
Reply by Peter Tucker on 25/02/2010 at 23:09
First and foremost, there would need to be a very drastic overhaul of the systems of Taxation and National Insurance liability calculation. Were they to retain their present complexity, then there would be no likelihood that banks would be able to cope.
Additionally, who pays for the effort of the banks in making such a system work, presumably with a layer of profit added by the banking industry. Would this charge be levied on receipt at the employee account or at the employer account during the payment process - in truth probably at both ends.
Others make good points concerning how mistakes could be challenged or rectified and it is easy to imagine a whole new layer of ambulance chasers, like those who emerged over miss-selling of Mortgages, Payment Protection Insurance and Personal Accident Claims
Reply by John Clark on 02/03/2010 at 16:06
What a great idea!
Reply by Kerry Swinton on 12/04/2010 at 17:21
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