Fri, 10 Aug 2012

PAYE pooling put on hold while RTI introduced

Plans to give closely connected employers the option of being treated as a single entity for PAYE purposes have been put on hold.

The move comes following an informal HMRC review of PAYE pooling, which took place between October and December last year.

Despite having some disadvantages PAYE pooling enables organisations to save administration time and costs by reducing the number of separate returns and payments they need to make.

As a concession HMRC says it will allow employers who currently have an informal agreement to pool their payrolls to continue with those arrangements until further notice but no new applications to pool payrolls will be accepted.

The Revenue says it will reconsider the regulatory changes needed to introduce PAYE pooling after the introduction of Real Time Information next year.

See also:

• Glitch prevents RTI annual scheme registration
• RTI causes chaos as filing of P45 returns disabled
• HMRC expects ‘chewy moments’ when RTI launches