RTpay: A real time PAYE collection system
To organise a presentation or to talk in more depth about a Real-Time PAYE solution, contact cwilliams@RTvat.eu
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Real Time PAYE is an effective and efficient approach for developing countries. RTpay is a service from RTvat, a not for profit organisation which actively promotes and helps develop innovative Real Time solutions using modern, tried and tested, Real Time technologies. We work with governments, tax authorities, fraud analysis and transaction specialists, credit card companies and banks to create Real Time solutions and approaches for national and international information and financial transfers.
The Real-Time Solution for PAYE
The employer is no longer responsible for calculation of the taxes, or for having to adjust for any changes in rates or allowances. This reduces the administrative burden dramatically and therefore represents a major saving for the employer. Apart from the benefit to the economy overall, there is a greater chance of persuading more companies to move to a PAYE system when it is this simple to activate and operate. The amount of data needed on each employer and employee is simply compiled and can be kept at the CCPS for each local or central tax authority. When an employee moves to another tax area, there is no loss of data on taxes to date, so the new tax collection can continue without hindrance or error. Components of the real time system
Real Time tax collection
RTvat is working proactively with a number of governments and organisations to develop systems which are efficient, effective and resistant to fraud. To find out more about our Real-Time tax solutions: > contact us |
Recent advances in technology and exponential increases in processing power, added to the dramatic rise in the number of mobile phones used in developing countries, create a unique opportunity to quickly, easily and cost-effectively implement a wide reaching real-time approach to the collection of taxes and the treatment of benefits. Developing countries benefit from the opportunity to implement new leading-edge systems which are best suited to their particular needs, constraints and environment – unlike the developed world where legacy systems and outdated infrastructure can seriously hamper the introduction of even the most rational and efficient system innovations. 
In many developing countries, the standard method of payment for almost all business is cash. This has obvious convenience, but some major problems, not least for the collection of tax. There are potentially tremendous gains in security, efficiency and speed to be achieved by the use of a centralised electronic money system that can co-ordinate issuance of money, payments to third parties, and the collection of taxes.
In our solution the employer pays the gross amount of salary to the Central Clearing Point System (CCPS) for all employees in one single transaction. When taking on a new employee, the employer only has to check the Tax Identity Number (TIN) of the employee and enter that against the amount to be paid.
The advantages of Real-Time collection can be applied not only to indirect taxes such as VAT but equally to a range of other national and international central financial collection and distribution systems, including PAYE and Benefits Payments. 