With the new system scheduled for this April, HMRC has taken a nostalgic look at some of the changes and development to PAYE since its introduction in 1944 at a time when the financial strain from the Second World War meant that the Treasury needed to collect more tax from many more people.
- There are double the number of people in PAYE today over 30 million than in 1944
- Winston Churchill was Prime Minister when PAYE first came in
- The person who piloted PAYE Sir Kingsley Wood died unexpectedly on the day it was due to be announced to Parliament
- The system where employers would buy National Insurance stamps and attach them to a card ended in 1975 when they were incorporated into PAYE
- When PAYE came in most people remained with the same employer they started working with for most of their working lives. Today people move jobs and change employers much more frequently
- Every year HMRC receives incorrect or incomplete information from employers. A recent study revealed that 128 staff were entered as Mr, Ms or Mrs Dummy, while 40 people were apparently 200 years old after incorrect dates of birth were submitted to the PAYE system
- Over 80 per cent of errors in employee data are due to an incorrect name, date of birth or National Insurance number.
By the start of April 2013 all employers will be required to submit tax information in real time.
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Susie Hughes © Shout99 2013