Is a centralised tax system a viable option in the UK?
Employers may be relieved to pass over employee tax calculations to HMRC but experts are not convinced that a centralised tax system will work efficiently in the UK. Under a proposal released last week, the Revenue explained that employers would use the electronic payment system to send gross payments to a central calculator where HMRC deductions would be calculated automatically. Net pay would then be sent to an individual’s bank account and the Government would receive the deductions. The Institute of Payroll Professionals surveyed its membership about the proposals and discovered that although members support the idea of real time information, they are opposed to centralised deductions. Based on the survey results, the IPP has now submitted its recommendations to HMRC. The Institute would like to see a full consultation process on the requirements and regulations of real time data started as soon as possible. It also thinks that real time data should be introduced for a minimum of f
