Wed, 18 Jul 2012

Minister dismisses move to centralised deductions

Treasury minister David Gauke has dismissed suggestions made in an all-party parliamentary report on taxation published earlier this week that the government should implement centralised deductions.

Speaking at a Department for Work and Pensions briefing on Real Time Information (RTI) and welfare reform Gauke said: “We did consult on centralised deductions, which would have involved HMRC taking a much bigger role in doing payroll for everybody. Given the responses to that consultation, RTI delivers what we need for Universal Credit and makes substantial improvements to the tax collection regime.”

PAYE at the Crossroads, published by the All-Party Parliamentary Taxation Group, which is chaired by MP Ian Liddell-Grainger, suggested that “RTI should be viewed as the next logical phase in transition towards a new model for PAYE in the 21st Century, which negates all of PAYE’s problems and delivers the big cross-governmental prize – centralised deductions”.

Read the full story on the report here

See also:

• RTI interim penalty regime removes the incentive for employers to report in real time
• HMRC publishes RTI pilot update
• RTI penalty regime to be published next week