OTS Calls for Review of PAYE System

OTS Calls for Review of PAYE System

In a new report, the Office of Tax Simplification (OTS) has called for the Pay as You Earn (PAYE) system to be reviewed, to ensure tax agents can ‘see relevant client information’ and ‘access a number of key services’.

The report suggested that tax agents ‘don’t always have full access to their clients’ PAYE records’. In addition, the current PAYE system ‘does not handle the fluidity of the modern workplace very well’, according to the OTS, especially in relation to changes of job mid-month, multiple jobs, concurrent employment and self-employment.

Commenting on the report, Bill Dodwell, Tax Director at the OTS, said:

‘It is time for a new review of PAYE, to look at areas where the inputs from employers do not work well and how they are processed by HMRC to update tax codes and the new personal tax accounts. The review needs to update PAYE for modern working patterns.’

The report also proposes creating a ‘PAYE-like experience’ for the self-employed, in order to allow them to set money aside to pay future tax liabilities.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.