Consultation on modernising the personal tax system

HM Revenue and Customs (HMRC) consults on increasing the transparency of the personal tax system, which includes PAYE and income tax self assessment. 

HMRC considers that, because of the way in which the PAYE system works, not all employees know how to check their tax code and whether or not their data is up to date, and how much tax they are paying and why. The consultation document sets out proposals to improve individuals' understanding of tax and make the tax system easier to deal with. 

The Government consults on:

  • the introduction of personal online tax accounts, containing up-to-date information on the employee's income and the amount of tax that he or she has paid, including how this has been calculated;
  • the introduction of pre-filled tax returns;
  • the introduction of pre-filled tax statements; and
  • greater education on why tax is collected and spent. 

The consultation has been launched amid a range of initiatives aimed at transforming the personal tax system. The consultation document states that: "a simpler and more transparent personal tax and welfare system helps work pay, supports fairness and encourages growth". 

The consultation closes on 24 February 2012. 


The XpertHR policies and documents section includes a model itemised pay statement

The XpertHR employment law manual provides up-to-date guidance on PAYE

The XpertHR FAQs section provides answers to frequently asked questions on PAYE: