HMRC RTI super-snooper system set to spread more chaos

[TonyGosling]

Chaos over biggest employment tax shake-up in 70 years
Businesses and families are heading into a “nightmare” today, amid fears that the biggest employment tax shake-up in 70 years will ensnare companies in red tape.
The changes come despite Mr Cameron’s promise to 'cut back on excessive rules' to help 'unleash our small businesses' Photo: AFP/Getty Images

By Rowena Mason and Louisa Peacock

10:00PM BST 05 Apr 2013
http://www.telegraph.co.uk/finance/personalfinance/9975559/Chaos-over- biggest-employment-tax-shake-up-in-70-years.html
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Accountants said that many businesses are “completely unprepared” for a wave of bureaucracy coming into force tomorrow when employers will have to report Pay As You Earn (PAYE) information in “real time”.

They also warned that HM Revenue & Customs may not be able to cope as thousands of its staff are going on strike this Monday and its computer systems have been undergoing “essential maintenance” for the past few days.

Under the new Real Time Information (RTI) system, more than a million businesses — as well as charities, churches and families who employ nannies or cleaners —must report immediately any wage payments to the taxman.

Small businesses have a six-month grace period in which they can report once a month, but they will still have to get to grips with complicated new rules and computer software before complying fully in October.