.png)
.png)
The Institute of Chartered Accountant in England and Wales (ICAEW) has called for HMRC to defer compulsory online PAYE filing for small businesses.
Under proposals announced by the Government in the 2002 and 2006 Budgets, the requirement will come into force in April 2010. The ICAEW has said it supports the move in principal, but it has published a response containing a number of criticisms and suggested amendments.
The organisation's main concern is that laying the regulations for compulsory online filing for all should be deferred until:
- HMRC’s system and service standards have been fully operational and functioning well for at least 12 months.
- Landline broadband access is available throughout the UK.
- The economic climate has improved.
If the laying of regulations is not deferred, the ICAEW has suggested that there be no automatic penalties for failing to e-file until changes have been made to the rules.
The institute has claimed that the Revenue's current filing system is not 'sufficiently robust' and may not be suitable in terms of bringing forward the new regulations for compulsory online action. The ICAEW's doubts are based on the high number of problems being brought up by employers already using the system.
The organisation has also pointed out that there are still small businesses that lack computers and/or internet access, and that the costs of employing an agent or acquiring computing skills have been underestimated by HMRC.
The issue of ‘accidental employers’, such as those who employ nannies or carers, is also a cause for concern, said the ICAEW, which added that sufficient provision has not been made for such cases.
