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HMRC implements new contractor PAYE fix

All you limited company contractors, you can breathe easy: the taxman has handed down a PAYE reprieve that exempts you from the new RTI rules.

Her Majesty’s Revenue & Customs has been causing headaches with their new Real Time Information scheme, and if you work through your own limited company you’ve likely been pulling your hair out – especially if you get paid annually. Well it’s your lucky day: HMRC has decided to begin granting requests to change your PAYE status to exempt you from having to submit a return every month and simply do it once a year.

The taxman had to put a few new systems in place before they could offer this service to limited company contractors, but now they’ve got it up and running. Not a moment too soon, if you ask me; for what it’s worth, limited company contractors have enough on their mind without having to muck about with RTI on top of everything else in their hectic lives.

Of course, HMRC is still not making it necessarily all that easy to keep up with this, as they’ve decided to not inform employers as to when they actually accept these requests and change your tax status. I swear I don’t know what it is but the taxman just enjoys taking one step forward just to take two steps back, don’t they?

I swear it’s like the taxman just loves making things difficult and more confusing for as many people as possible. This whole RTI thing has been a nightmare from the very beginning, especially for employers; any firm that didn’t have computerised payroll software that was capable of interfacing with HMRC over the internet had to upgrade when it went into effect this past April, and maybe it’s just me but if I was a business owner I would have a lot more important things on my mind that having to learn a whole new payroll accounting system just to satisfy the whims of some passel of government bureaucrats!

Yes, I know what you’re saying: RTI is supposed to make income tax and National Insurance payments more accurate. Well, what the government calls ‘more accurate’ sounds like ‘a big pain in the arse’ to me, and with the amount of additional red tape this new initiative is generating, I think you’d be hard-pressed to prove me wrong, now wouldn’t you?

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