HMRC has opened a new consultation on PAYE pooling. It is suggested that connected employers would save costs and administrative burdens if they could be treated as one employer for PAYE purposes. 

The consultation document notes that HMRC does not currently have a specific definition of what is meant by “connected employers”. It expects to apply different criteria for private businesses than public bodies.

There are numerous issues for the private sector to address not least HMRC’s tax penalty regime and debt collection, however, as many firms already outsource payroll functions pooling is not mechanically at least very easy.

Source: HMRC PAYE Pooling 

Consultation ends on 15/12/2011