PAYE Contributions Debate

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Department: HM Treasury

PAYE Contributions

Ian Liddell-Grainger Excerpts
Wednesday 8th September 2010

(14 years, 2 months ago)

Commons Chamber
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David Gauke Portrait Mr Gauke
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It is right that people pay the tax that is due. I have read the newspaper reports, and it is right to say that a concession is available in some circumstances, but I have been straightforward in making it clear that we do not believe that it will be widespread. People should pay the tax that is due, and given the state of the public finances, we are certainly not in a position to wave goodbye to £2 billion. That would not be fair on those who have paid the correct amount of tax.

Ian Liddell-Grainger Portrait Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)
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My hon. Friend has said that the NPS—the national insurance and PAYE service—system is now up to date and working, within reason, but he has also admitted that PAYE is a 1940s system and not up to date. A consultation is currently going on and is due to shut in about two weeks. One of the problems that he identified was that information can be up to 18 months old. When will we reach the stage of real-time collection, and if it does come in, how and by whom will it be administered?

David Gauke Portrait Mr Gauke
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My hon. Friend is right that we are consulting on moving towards a real-time system. I do not pretend for a moment that it is an overnight solution, but we are examining it so that over the next few years, we can move to a system that gives HMRC, which will of course continue to administer it, information that is up to date and adjustable in-year. That will ensure that we get a much greater level of accuracy in our tax system.