Government accept further payroll simplification recommendations from the OTS

13 December 2014

In a letter to the Office of Tax Simplification (OTS), the Government have accepted several of their recommendations for payroll, including a post-implementation review into RTI and consideration of the “on or before” rule.

The letter from David Gauke MP, the Financial Secretary to the Treasury, ranges over most areas of taxation, and includes a number of new announcements concerning OTS proposals for simplifications in the payroll arena. These are tabulated on page 9 of the letter, and include:

· Agreement to consider harmonising tax and national insurance a far as possible

· A post-implementation review of real time information, and consideration of whether full “on or before” reporting is necessary

· Agreement to consider extending the remit of the short-term business visitor provision, and simplifying the national insurance application process for staff coming in from abroad

· Agreement to allow employers to authorise software providers or others to deal with HMRC on their payroll issues.

We should stress that at present these are all proposals, and would need legislation before any such changes could come into force