Contractors need any changes to the Pay As You Earn (PAYE) system to create a greater degree of robustness, a leading organisation has claimed.

The Recruitment and Employment Confederation (REC) made the comments in its reply to the recent consultation by HM Revenue and Customs (HMRC) on the incorporation of real time information.

Gillian Econopouly, head of policy at the organisation, emphasised the importance of any new system taking into account the qualities of the temporary worker market.

Despite this, she was positive about any efforts designed to reduce administrative burdens such as those involved with starting and leaving a job as a contractor.

Ms Econopouly added: "The REC has highlighted the need for an efficient system which seeks regular feedback from industry and guards against the costly administrative errors that have dogged previous HMRC projects."

Earlier this week, the REC warned that NHS cuts will have a hidden impact on temporary, locum and contractor staff, with thousands of jobs potentially at risk.