The draft regulations for 'real time information', whereby playslip data will be transmitted to HMRC at the time employees are paid rather than once a year, would have seen P45s replaced with a leavers statement - essentially the last payslip. Following consultation with employers, this will no longer be the case.
John Harding, tax director at PwC, said:"These days many employees have their payslips on-line. HMRC's assumption that a leaver would be able to access an online payslip to pass on to a new employer after they left was always open to question. In addition payslips these days often contain more data than the P45s and some employees may have felt uncomfortable divulging extra details to their new employer. For employers involved in piloting the new system there would also have been logistical problems around being able to process both leavers statements and P45s during the initial trial phase.
"We commented on these issues during the recent consultation and I am pleased that HMRC has listened to some of the concerns our clients raised, but this shouldn't detract from the bigger challenges around PAYE reform. Combined with automatic pension scheme enrolment, employers face a maelstrom of payroll changes all happening at once. Any glitches in this area can have damaging ramifications - concerns over leavers statements/P45s pale in comparison."
The Chartered Institute of Payroll Professionals (CIPP) welcomes the decision by HMRC to keep the P45 after HMRC abandoned plans to introduce a Leaver Statement for employers participating in the Real Time Information programme.
Having consulted with employers, HMRC announced the u-turn this week following a lack of support from professionals.
Helen Hargreaves, senior policy and research officer at the CIPP, added: “The CIPP Policy Team is pleased to see that HMRC has withdrawn plans to introduce the Leaver Statement. The P45 form is recognised by employers and employees alike, and at a time of great change, removing this form and replacing it with something else would have created unnecessary confusion. The CIPP has voiced its concerns with HMRC and is delighted to see that HMRC has listened to our views, and those of other interested parties, and come to a solution which addresses those comments.”
With the Real Time Information pilot on track for 2012, HMRC is keen to work with employers to ensure the introduction is smooth. HMRC announced the go ahead for RTI in April 2011 and the introduction will be the biggest change to the PAYE system since its inception in 1944. The pilot begins in April 2012 and will see three hundred companies take part.
Source: www.hrmagazine.co.uk 8 February 2012
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May I take this opportunity to thank Irene, Cath, Lianne and all the staff at Simply Contracting, for the outstanding service you have provided.
It seems a long time back since I started with you, and I would not hesitate in recommending your company.
Brian Flint, Tyne & Wear
I have been with simply contracting for a number of years and found the service to be excellent. Any queries or concerns are dealt with promptly and efficiently and the staff are always very helpful. Any information issued is easy to understand. I have and will continue to recommend them to colleagues.
David McKeown
I have been with Simply Contracting for several years and I have always received fantastic service. Even bearing that in mind, the service levels I have received lately, through some very trying times, has been absolutely outstanding. Nothing is ever too much trouble, and although the girls probably physically recoil when they see my name on any of their “to do” sheets – I always get a first class job delivered in the most personable of manners. No question ever goes unanswered – unless I am asked it! Folk usually only give feedback when things go wrong, but I think it is worthwhile to recognise excellence also – the service I receive is excellent. Thanks, and long may it continue.
Tom Elvin, Glasgow
I am completely happy with the service Simply Contracting are providing to me. Everything has happened as it should. When I have had queries (which are more about me building up my knowledge of the finance side) they have been answered quickly and accurately, even when the person the e-mail was addressed to was away. I think the service offers good value for money so I am pleased that I went with my colleague's recommendation to use yourselves.
Andy Brundrett, Cheshire
I have been involved in self employed contract working for more than 20 years for many different companies in various parts of the world. In this time I have been self employed, limited company, SC 60, and 714 certificated. With all of these ‘systems’ I have had many issues with the problems of invoices, payment, and the very time consuming process of accounting for my wages, tax payments, VAT , expenses etc. Over the years it has caused me a great deal of concern, time and worry that I did not need, especially when I was working away from home.
If I have any questions or any other reasons to contact the office, I have always found the staff very helpful and polite and they have always explained and given answers that even I can understand. It suits me to sit back and have my accountancy service take care of the part of self employment that I do not enjoy.
Bob Gorman
Quite happy with things thank you - best service from any provider I've had over the years.
David Powell, Glamorgan