HM Revenue & Customs (HMRC) has confirmed that its Real Time Information (RTI) system, developed to improve the operation of PAYE taxation, is to go ahead with a pilot beginning in April 2012. The department is to invite software developers and volunteer employers to take part in the pilot. If it is successful, employers will be …
Looks like the market for contractors should pick up a bit in Feb 2013...
The key phrase here is "The department is to invite software developers...", which translates as "We will ask the usual suspects..."
In other words: "don't call us, we'll call you".
The usual suspects generally use 80% contractors
So, snouts in the trough, boys!
but HP (fomerly EDS), Accenture etc will need to employ people to do it ...
Who's writing the effing system?
"We want to work with software developers and employers to help us deliver the new system" - so excuse me, but who exactly is being paid to do the systems development on this project? Will HMRC be releasing the code for public review? Will these developers be paid?
On the other hand, this kind of thing will seriously piss off at least one ex-colleague who works on the account. "Your code isn't good enough, we're calling in anybody who wants to try their hand..."
Re: Who's writing the effing system?
HMRC will employ people to write their side of the system, but it will need to interface with employers' existing payroll software, and that is where the working together bit comes in.
I hope they do a better job than they did with xbrl for corporation tax returns, but I fear they will do a much worse job, not least because a typical company has one corporation tax return to file annually, and quite a few employees to file monthly or even weekly.
That's a shame. I was hoping they might mean hour by hour or minute by minute. It might be quite educational if people could see a running total of the taxes they were paying.
Unfortunately I doubt the govt. and HMRC would be keen on that level of clarity and transparency.
hmmm how much dealing do you have with HMRC
The software developers are the Sage etc of the world who interface with HMRC not the HMRC system itself.
Of course, if you have carefully advised them of monies received and tax paid over the year, the oppportunities for a bit of tax-efficient creative accountancy at tax return submission time become rather more limited.
But they won't have thought of that at all............
Or it could be a Real Time Information With A Bit Of Batch Processing system.
After all it's really just*:
* That's "conceptually" just.