PAYE Year End to Change

The Pay As You Earn (PAYE) system is to change from an annual to a monthly system, in a step designed to make it easier to manage for employers.

Real Time Information (RTI) will be used to transmit information to HMRC each time an employee is paid. This will result in the phasing out of the P35 annual returns as well an end to submitting P45 and P46 forms when an employee starts or leaves.

The introduction of RTI will start in April 2012 with a test polit. If the scheme is successful, HMRC hopes that more employers will use RTI during 2012-13.

Payroll expert Nick Butler of James Cowper said: “This is a sensible decision from HMRC and will be a relief to many business owners. Together with the notifications from HMRC that already exist when a late payment is made, businesses now have every opportunity to avoid substantial and unexpected year-end penalties.”

Ricky worked as an Investigator in the Inland Revenue for over 20 years before founding Steedman & Company in 1987, giving him the experience and knowledge that’s enabled him to help so many clients over the years.

His appearance on a Channel 4 television programme about the inside workings of Revenue and Customs was watched by 4.1m, sealing his status as one of the most highly respected tax consultants working in Scotland today.

Ricky leads all tax investigation and COP 9 cases, using his extensive knowledge to help people reach a positive resolution to their situation.