A PILOT for real-time PAYE information (RTI) has begun, with the first ten volunteer employers - including HMRC - submitting their RTI return.
It is hoped RTI will make it easier for employers, pension providers and HMRC to administer PAYE. real time tax information will allow employers and pension providers to inform HMRC of PAYE payments as they are made, instead of at the end of every year.
If successful, most employers will join the regime in April 2013 and all employers will be using it by October 2013.
David Gauke, exchequer secretary, said: "RTI will ensure that the PAYE system meets the needs of the 21st century. It will improve the service to taxpayers by making it easier to ensure that people pay the right tax after a change of job.
"HMRC is committed to a smooth and on-time transition. The start of the pilot today demonstrates that RTI is on track.
"RTI will remove administrative burdens of £300m a year from employers, mainly from the abolition of the end-of-year PAYE returns process - the biggest single contribution that any tax change could make."
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