The informal review of PAYE Pooling (discussion paper published 24 October 2011 to the 15 December 2011) which looked at a possible change to the Pay As You Earn (PAYE) system to give closely connected employers the option of being treated as a single entity for PAYE purposes has concluded that no further work will be undertaken to introduce a legislative change during the introduction of PAYE in real time.
As a concession, HM Revenue & Customs (HMRC) will allow employers who currently have an informal agreement to pool their payrolls to continue with those arrangements until further notice. No new applications to pool payrolls will be accepted.
HMRC will continue to monitor the issues arising with PAYE Pooling with a view to reconsidering the benefits of regulatory change after RTI has been introduced.
