PAYE Online
HMRC has launched a new online PAYE service, which it claims will give 35 million workers more control over their tax affairs. Designed to be simple to use, it enables workers to check and update allowances, reliefs and expenses via a Personal Tax Account or the HMRC app.
What can you do with PAYE Online?
Employers can use the PAYE Online service to:
- check what they owe HMRC
- pay their bills
- see their payment history
- access tax codes and notices about employees
- appeal a penalty
- get alerts from HMRC when they report or pay late, or do not send the expected number of reports in a month
- send expenses and benefits returns such as P46 (car), P11D and P11D(b)
Registering for PAYE Online
Employers who have registered online will automatically get enrolled for the PAYE Online service. Those who have registered by post or phone will need to enrol before using the service. Once registration is complete, an activation code is sent within 10 days. Accounts must be activated within 28 days of the date on the letter.
The Transformation Roadmap
The PAYE Online service is another step towards realising HMRC’s plan to become digital-first by 2030. The Transformation Roadmap aims to have 90% of customer interactions taking place digitally within the next five years, making it easier for workers to manage their tax affairs and receive assistance.
Another key milestone is the reduction of HMRC’s reliance on paper correspondence. It’s estimated that by moving customer letters and reminders to a digital-first approach, £50 million each year will be saved – the equivalent of employing 1,500 full-time nurses.
Some of the other measures set out in the Transformation Roadmap include:
- Extending the rollout of the SMS confirmation service to Self Assessment appeals, complaint cases and some PAYE services.
- Improving the registration service for Self Assessment and streamlining the exit process for those who no longer need to file a Self Assessment tax return.
- Making customer verification easier when calling HMRC’s helplines by expanding the rollout of the voice biometrics pilot.
- Developing a new service to give employed parents, who are newly liable for the High Income Child Benefit Charge, the choice to pay it directly through their tax code without needing to register for Self Assessment.
- Launching a new service that enables agents to digitally submit information that may impact their client’s tax code.
- Delivering a Digital Disclosure Service to enable customers and intermediaries to correct mistakes and pay liabilities or penalties for all taxes and duties.
JP Marks, HMRC’s Chief Executive and First Permanent Secretary, said:
“The Government’s ambition is for a simpler tax and customs system and this roadmap sets out how HMRC will deliver a first-class experience that feels different to their customers.
“By 2030, UK citizens will experience a tax administration system that is more automated, more focused on self-service, and better set up to get things right first time so they can fulfil their tax obligations.”
If you’d like to learn more about the PAYE Online service, or need help with registration, contact a reputable accountant today.
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