The ever-growing complexity of dealing with payroll can best be illustrated by taking a brief look at what has happened over the last twenty years.
The payroll function has morphed into a monster of red tape and confusing regulation. Is it time to let the professionals deal with it for you?
Gone are days when you could sit down with a set of tax office paper tax tables and work out with paper pen and calculator the tax and National Insurance to deduct from wages. The growth in the use of software and payroll bureaus has been driven by the desire of business owners to reduce their exposure to the annual rise in the administrative burden of PAYE.
Without listing every change, if we can look back at the development of PAYE and NIC over the last two decades we can see the following key changes:
No of changes
Key change examples
P46 forms, £5k beneficial loan threshold
PAYE settlement agreements
New travel expense rules
Class 1 NIC reforms, National Minimum Wage, new CIS scheme
Single tier pension, Secondary NICs abolished for under 25 apprentices, contracting out abolished, Payrolling of benefits
Apprenticeship Levy, gender pay gap reporting
Each year the payroll function becomes ever more complex, with more and more employers deciding to place this administrative burden in the hands of professionals such as ourselves. If you would like to discuss how we can help you, please contact our Payroll Team.
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