Despite the recent introduction of Real Time Information (RTI) for PAYE, HMRC has confirmed that around 5.5 million people paid the wrong amount of tax in the 2013/14 tax year. In fact, it estimates that around 3.5 million people are going to end up owing the tax man an average of £300.

RTI was brought in to ‘streamline’ the PAYE system and reduce errors, but the mistakes have actually increased year-on-year. As an employer you will need to be extra vigilant when it comes to your payroll to ensure that all data at your end is 100% correct. Despite the mistakes, HMRC is now able to monitor your payroll much more closely.

Running a payroll

If HMRC thinks that something isn’t adding up, you may find your payroll under investigation. It is worth acting now to make sure that you have all bases covered, including:

·         A seamless process for setting up new starters, leavers and students

·         Careful calculation of amendments and statutory payments such as sickness and maternity pay

·         Regular ‘health checks’ to ensure you are complying with all rules and regulations relating to payroll

·         Carefully structured benefit packages.

The new payroll rules mean that data must be reported in real time, which when added to the above can prove time consuming, particularly for smaller businesses where resources are limited.

Outsource your payroll

This is where we can help. We can take on your entire payroll, from pensions to statutory forms, even if you have only a few employees, you will make savings by letting us handle your payroll so you can get on with running your business.

Please contact us to find out more.