There are roughly 5.5 million businesses in the UK (you probably didn’t realise that there are that many), and of those, 99% of them are SMEs. They range from accountants to corner shops to engineering firms to printers and multiple others, but all with one determination, and that is to grow and expand.
SMEs come in three sizes, and these can be defined as micro businesses with ten or less employees and a turnover of less than£1.75 million. Small businesses are 1 – 50 employees and turnover of more than£1.75 million but less than £8.5 million, while a medium business is 50 – 250employees and turnover of more than £8.5 million but less than £45 million. Whichever of these categories your business fits into, there is one thing that you all have in common and that is you all have employees. As soon as you have just one employee you are faced with having to produce payroll.
Now if you just have one or two employees, then calculating payroll is not going to take you all day, and you can probably manage to do that yourself as the business owner. However, as your business grows and you take on more employees, payroll can very quickly become something that takes up a lot of time and can be very complicated. This is because not all employees are paid at the same rate, they may not work the same number of hours every week or month, they may go sick and have to be paid sick pay, they may get pregnant and need maternity leave, they may do overtime and they may be paid a commission or bonuses. The list goes on.
The more employees you have, the more complicated the payroll becomes. Once upon a time you spent your days gaining new customers and providing them with your products or services, but now you find yourself spending two days a week wrestling with “maths”. Let’s face it, that is what it is all about and if you are like the vast majority of businessmen, you didn’t start your business to spend your time fiddling with figures all day.
Despite that, here you are, stuck with it all because you have employees. Part of the problem for SMEs is that in most cases they do not have enough employees to justify taking on someone to run the payroll. So, what happens is that another employee is then tasked with spending a couple of days a week doing the payroll. That employee will need training and you will need to invest in some software, but at least you no longer have to do it yourself. However, there is another issue to be considered here which is that someone who has only had basic training in payroll is very prone to making errors, and in turn these can lead to all sorts of other issues including fines for late and incorrect payment of taxes.
This is why so many SMEs prefer to use the payroll services for small business in the UK that we provide at PayCheck. We can take over all or just part of your payroll depending upon your individual requirements, but what will happen is that, for a small agreed monthly fee, you can completely wave goodbye to all your payroll worries. We can do it all, for the simple reason that we are specialists. It is what we do.
To find out more about our payroll services for small business in the UK call us on 020 7498 1133 or email firstname.lastname@example.org.