Payroll plan could be painful - expert
East Midlands employers look set to face problems following the introduction of new payslip rules, a tax expert has warned.
From October 2013, all employers must use a new system which will involve payslip data on tax, National Insurance contributions and other deductions transmitted to HM Revenue & Customs at the time employees are paid, rather than once a year.
The move will lead to P45s and some other such forms being phased out.
But Richard Farnsworth, director and tax expert at PwC in the East Midlands, said: "The scale and timing for change could pose problems. Real time information will see employers gathering and transmitting considerable volumes of data, beyond what is already on the payroll system.
"Timescales are incredibly tight for getting the processes in place across the many parties involved, let alone dealing with training and communications.
"All this will be happening when many employers are grappling with the challenges of automatic pension scheme enrolment. There is also likely to be a level of confusion among employees as they get used to 'leavers statements', which will replace P45s."
