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Red-tape strangulation
SIR - An initiative by HM Revenue and Customs will cause mayhem for many businesses. April will see the introduction of Real Time Information by which, instead of an annual return to HMRC for employees on PAYE, there must be one each time someone is paid; that is, 52 times a year for those on weekly pay.
As a small company, we have used computers for wages since 1984 and progressed with changes through the years. However, I think that this one has beaten us, and we are going to have to use a service at additional cost.
The Government was supposed to be getting rid of red tape. Now there is an additional complication for already overloaded small companies.
Jacqui Higgs
Birmingham "
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Telling the tax man
SIR - The charity for which I work has paid zero-hours (formerly called "casual") staff cash in hand at the end of a shift for decades, and reported annually to HM Revenue and Customs.
When the implications dawned of Real Time Information (by which HMRC must be informed of each payment at the time it is made, Letters:
see above), we realised we could not afford the infrastructure for RTI reporting, since someone was being paid cash in hand somewhere almost daily. Many others employers will find themselves with the same dilemma.
We have been forced to replace our system with monthly pay. For new staff this will be cashless. For some staff, generally the poorer, it will cause real hardship. We have introduced special measures to help. One hopes others will do the same.
RTI is a greatly under-reported social change. A whole way of life for "casual" employment is being radically curtailed. This initiative will bring a raft of political and economic consequences, both intended and unintended.
Peter Bevington
Oswestry, Shropshire"
http://www.telegraph.co.uk/comment/letters/Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.