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Posted by Sarah Putt

A consultation on the operation of Pay As You Earn (PAYE) aims to explore methods that could lower the administrative cost of this form of tax, it has been revealed.

HM Revenue and Customs (HMRC) has announced that it will be collecting information that aims to provide a foundation for further change.

It is seeking information on whether collecting information on PAYE deductions in real time would be better and what would need to be changed in order to achieve this.

Umbrella company users looking to get involved with this have until September 23rd to make their opinions known and HMRC is looking for those running PAYE schemes, software providers and payroll service providers.

HMRC stated: "If it is decided to proceed with the collection of real time information on PAYE deductions, it is expected that the next stage of consultation will begin in the autumn."

Last month, Fav Stocks' Mark Lee claimed that the abolition of IR35 would probably lead to similar legislation being implemented.