Following consultation, a regulation-making power will be introduced in the Finance Bill 2012 to facilitate the provision of information required for the operation of Real Time Information.
The government will consult before the summer on a new model for pay-as-you-earn (PAYE) late payment and late-filing penalties, ahead of the main roll-out of Real Time Information in October 2013.
This will be included in the Finance Bill 2013.
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Real Time Information (“RTI”) payroll reporting is being phased in on a trial basis from April 2012, with all employers required to comply on a phased entry basis from April to October 2013. The rationale for the introduction of RTI is to improve the operation of PAYE and to help support the introduction of Universal Credits.
It was announced in today’s Budget that the Government will consult before this summer on powers to facilitate the provision of information required and on a new model for PAYE late payment and late filing penalties ahead of the main rollout in October 2013.
Matthew Hunnybun, Tax Partner at KPMG commented:
‘This indicates a much more proactive approach to compliance by HMRC. Employers need to introduce and revisit policy, processes and software changes to collate the required information into a single place in advance of RTI implementation.”