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29th July 2010
Contractors to contribute PAYE views
Contractors will be among the people asked to contribute their views for a forthcoming PAYE review.
It recently emerged that the government is planning to change the tax system, with Treasury Minister David Gauke claiming that the current regulations are considerably out of date.
As part of the proposals, HMRC has developed a discussion paper to collect employees' views on PAYE and establish how the system can be improved.
Mr Gauke said it is important that PAYE system – which currently applies to around 30 million employees - is tailored to meet the needs of all workers.
"Only in this way will we be able to reduce errors and provide taxpayers with the clearest picture possible of their tax and allowances," he insisted.
Since coming into effect in 1944, employers have been responsible for deducting workers' income tax and National Insurance contributions on the paper-based system, something which Mr Gauke is keen to change.
"We would like to hear from all who have views on how a real-time system could best meet their needs to ensure that we deliver a 21st century PAYE system," he said.
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