HMRC have published a consultation paper which looks at improving the operation of PAYE by the provision of real-time information. This is the second stage of the consultation. The first stage, 'Improving the operation of Pay As You Earn (PAYE)' took place during the summer of 2010.
Under real-time information, employers would be required to send information to HMRC regarding and employee's pay and deductions at the time that the employee is paid. Currently, such information is only provided after the year end.
The decision to move to the provision of real-time information has already been taken. This latest consultation explores how the provision of real-time information will work in practice and the timeline for its introduction.
The consultation document, 'Improving the operation of PAYE: Collection of Real Time Information' is available on the HMRC website. Comments on the proposals are sought by 28 February 2011.