From the Guardian this morning:
From the HMRC Tax Gap report press release yesterday:
This year's tax gap figures highlight the positive impact that HMRC's digital transformation is having in making it easier for people to pay the right amount of tax.
In particular, the introduction of Real Time Information for the Pay As You Earn (PAYE) system has led to more accurate recording of information on payroll taxes
It would seem that one of these claims is based on fact and one on fiction.
You decide which.
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Quite possibly both are based on fiction….one hand knowing what the other doing etc.
They are referring to two different things. The savings through Real time information relate to the fact that HMRC and employers now coordinate monthly pay checks with information around benefit payments (i think only to do with Universal Credit) and previous employment.
By definition, if hermes is using self employed staff, then they won’t be going through their PAYE systems.
No
They’re about exactly the same thing – paying the right tax on the right place at the right time
And if Hermes are not applying PAYE when they should that is a failure , RTO or otherwise
If Hermes are engaging workers through agencies, then it is highly unlikely that there is any obligation for Hermes to apply PAYE.
There may be some obligation on the agency under the Agencies legislation, or another company in the chain may be caught by IR35, but there is no obligation on Hermes.
The question of false self-employment is entirely separate from any increases in compliance due to RTI, and so I can quite see that there can be an improvement in one while the other needs some work (though so far as I can tell the IR35 situation is at last starting to improve).
Both are relatively complex areas, of course, and so I quite understand that they can be a bit confusing if you’re not used to dealing with them.
This is your usual drivel Andrew
At a micro level you are pedantic ally correct but this is a macro issue on which you fundamentally miss the point
The tax gap us about macro issues
And at a macro level if the wrong tax is paid there is an issue
As ever you completely miss the point
How many times have I said that now?