UK tries out real-time tax scheme

Tim Wallace
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A PILOT for a new real-time information system was launched by HM Revenue and Customs yesterday in an effort to cut down on over- and under-payments of income tax.

The scheme is designed to reduce errors in the pay as you earn (PAYE) system when workers change jobs, which HMRC hopes will save employers £300m per year.

This represents “the biggest single contribution that any tax change could make,” according to exchequer secretary David Gauke.

Ten firms have volunteered for the pilot, and HMRC says most employers will be using the system in full by October 2013.