Welcome to the June 2019 Newsletter from Walsh & Co

The Office of Tax Simplification (OTS) recently called for an overhaul of the current Pay as You Earn (PAYE) system. In a new report, the OTS stated that redesigning the system would 'make it easier for tax agents to view small business data'.

Meanwhile, the government has launched a consultation focusing on Companies House reforms. These include a 'major upgrade' of its register, alongside new systems designed to 'better protect' individuals' personal information.

OTS calls for review of PAYE system

In a new report, the Office of Tax Simplification (OTS) has called for the Pay as You Earn (PAYE) system to be reviewed, to ensure tax agents can 'see relevant client information' and 'access a number of key services'.

The report suggested that tax agents 'don't always have full access to their clients' PAYE records'. In addition, the current PAYE system 'does not handle the fluidity of the modern workplace very well', according to the OTS, especially in relation to changes of job mid-month or concurrent employment.

Furthermore, the OTS stated that information collected via Real Time Information (RTI) 'doesn't always flow through to personal tax accounts quickly', which can result in 'inaccurate calculations'. This leads to stress for taxpayers, incorrect tax codes and 'a lack of faith' in HMRC's systems, the report said.

According to the OTS, system problems lead to 'significant costs' for businesses and HMRC itself. The OTS acknowledges that any changes to the current system would have upfront costs, but 'should soon pay for itself', and facilitate efficient tax collection, thereby helping to improve taxpayer experience.

Commenting on the matter, Bill Dodwell, Tax Director at the OTS, said: 'It is time for a new review of PAYE, to look at areas where the inputs from employers do not work well and how they are processed by HMRC to update tax codes and the new personal tax accounts. The review needs to update PAYE for modern working patterns.'

The report also proposes creating a 'PAYE-like experience' for the self-employed, in order to allow them to set money aside to pay future tax liabilities.

For more information on PAYE, please visit the Hot Topics section of our website.

Government launches consultation on Companies House reforms

The government has launched a consultation on new Companies House reforms, including a 'major upgrade' of its register.

The consultation aims to tackle misuse of the register. It also strives to provide business owners with 'greater protection from fraud'.

Some of the key measures proposed by the government include a 'robust' identity check for company directors and people with significant control; a cap on the number of directorships an individual can hold simultaneously; and new systems to 'better protect' the personal information that is held on the Companies House register.

The government revealed that, in the last three years, there have been nearly 10,000 complaints to Companies House from individuals concerned about their personal information being held on the register. The most common worries included fraud and the 'misuse of personal details'.

The government advocates creating a more sophisticated method of identifying criminal activity. It has proposed establishing effective links between the records held by Companies House and other government bodies, so that anomalies can be identified sooner.

Commenting on the consultation, Edwin Morgan, Interim Director General of the Institute of Directors (IoD), said: 'We welcome the thrust of these proposals. The IoD receives regular complaints from its members concerning the misuse of data published by Companies House. Transparency is a key feature of UK-registered companies, but if that transparency can be exploited by criminals or fraudsters, then trust in the legal framework of business is undermined.'

The consultation is open until 5 August 2019.


1 June
New Advisory Fuel Rates (AFR) for company car users apply from today.

19 June
PAYE, Student loan and CIS deductions are due for the month to 5 June 2019.

30 June
End of CT61 quarterly period.


'The size of the prize from improving management practices could be a massive £110 billion injected into our economy.'

Carolyn Fairbairn, Director General of the Confederation of British Industry, commenting on the business group's call for UK firms to 'improve their people management practices'.



Information and advice on a range of work-related and interpersonal skills.


A wealth of resources for businesses
With topics ranging from forming a limited company to exit planning, the Your Business section of our site is a hub of essential information.

Useful information for individuals
For a comprehensive bank of guides covering furnished holiday lettings, Individual Savings Accounts and much more, please visit the Your Money area of our website.


ATT suggests couples 'could be affected' by increase in stamp duty for non-residents
The Association of Taxation Technicians (ATT) has suggested that couples in England and Northern Ireland could be affected by a proposed increase in stamp duty for non-UK residents purchasing residential property.
Click here for the full story

Welsh taxpayers urged to check payslips following income tax code mix-up
Following an income tax code mix-up, HMRC has urged Welsh taxpayers to check their payslips to ensure the correct amount of tax has been deducted by their employer.
Click here for the full story

Research suggests UK workers 'unaware of entitlement to paid travel time'
Research carried out by the Department for Business, Energy and Industrial Strategy has suggested that four in ten UK workers are 'unaware' that they are entitled to be paid for the time they spend travelling between work appointments.
Click here for the full story

FSB urges government to create 'small business plan for Europe'
The Federation of Small Businesses (FSB) has published a comprehensive 'small business plan', outlining a host of reforms to help 'unlock the potential of Europe's small businesses'. It is urging the government to follow suit and produce its own plan.
Click here for the full story

CIOT warns Digital Services Tax 'not a cure for struggling high streets'
The Chartered Institute of Taxation (CIOT) has warned that the government's planned Digital Services Tax (DST) won't serve as a cure for the UK's 'ailing high streets'.
Click here for the full story