Concerns have been raised over the suspension of pay as you earn (PAYE) reforms, which had originally been scheduled to come into force this October.
Lobbyists the Low Incomes Tax Reform Group (LITRG) has expressed disappointment at the suspension of pay as you earn (PAYE) reforms, which had originally been scheduled to come into force this October.
No reason was cited by the UK's tax authority, HM Revenue & Customs, for the delay. While refraining from criticising the body for the suspension, LITRG suggested that some vulnerable taxpayers could be forced into paying extra tax due to the news.
The group also suggested that the delay came about due to the system not proving "robust" under testing - a big embarrassment for HMRC, if true. The new PAYE service is to work by linking up 12 existing HMRC databases into a single system, a "joined-up" approach that has met with praise from LITRG.
This is because the new PAYE system was previously promised by HMRC to provide far greater accuracy in calculating income tax, leading to the end of many administrative errors that lead to overcharging.
"We recognise that IT systems must be robust before they are launched," LITRG said in a statement. "Nevertheless, this is a blow for low income people as the new PAYE Service promised far greater accuracy in their tax affairs."
