Many of the benefits from the new PAYE services depend on PAYE information being provided to Inland Revenue on a payday basis. The Government needs to balance the employer’s interest in choosing how to provide PAYE information against the wider system benefits of information being provided in a disaggregated form and more quickly than at present. There are three possible approaches to implementation:
- Voluntary-first method: where employers could choose how to provide their PAYE information, but a timetable requiring employers to provide PAYE information at the time the business process occurs, may be introduced if justified by a review;
- Review method: which is like the voluntary-first method but where the date of the review would be specified at the outset;
- Legislated approach: under which a timetable would be legislated at the outset specifying when different classes of employers would be required to provide information when the business process occurs (for information about income and deductions this would be on a payday basis).
1. Do you agree that Government needs to be able to balance the employer’s interest in choosing how to provide PAYE information against the wider system benefits?
2. Which of the above implementation approaches to the provision of PAYE information at the time of the business process (voluntary-first, review or legislated) do you prefer and why?
3. If you support the ‘review approach’ how long after it first becomes possible to meet PAYE obligations by submitting data at the time of the business process, should the review occur?
4. Do you think Government should require employers to use payroll software capable of providing PAYE information at the time of the business process?
5. If your answer to any of the above questions would vary depending on an employer’s size or other characteristics, please outline the considerations you think are relevant.
6. If you were required to provide PAYE information at the time of the business process (for example information about payments and deductions on a payday basis) would you seek to change the frequency with which you paid your staff?