Payroll In A Small Business Can Be Complex

October 13, 2021

No matter how many employees your business has, processing your payroll requires time and attention to detail. In a relatively small business it may be you, as the owner, who undertakes the payroll, and there is no doubt that it is a time-consuming task which actually earns you no money whatsoever. In fact, every minute that you spend on payroll is a minute that you could have spent on doing something useful such as increasing your revenue.

Equally important is the fact that when you are carrying out payroll you have to get everything right – and that is not an easy task. If you send a tax return that contains a careless or deliberate error, HMRC can charge you a penalty of up to 100% of the tax under-stated or over-claimed.

There are penalties of varying amounts for other errors as well, such as filing limited company accounts late. If you miss a deadline, you can be charged as follows:

Up to 1 month late - £150

1 to 3 months late - £375

3 to 6 months late - £750

More than 6 months late - £1,500

If you were late the previous year, then these figures are doubled.

You can get fined for VAT errors, self-assessment delays, filing corporation tax late, and so on, so it is not just payroll, although that is one of the most complex returns because it can be constantly changing, especially if you pay bonuses or you have salesmen who work on a commission basis, because their pay is going to be different every month.

All of this is why so many business owners and company directors are switching over to using our payroll services for small business in the UK here at Pay Check. We handle payroll for over 1,500 businesses of all sizes and we produce payslips for over 50,000employees whether they are paid weekly, fortnightly, or monthly, and our BACS payments to employees add up to over £1.5 billion a year.

Get Rid Of The Whole Complex Job

When you use our services for your payroll, you can get rid of the whole complex job in one fell swoop. The simple fact is that we are geared up to handle payroll of any complexity and we have the IT structure in place that ensures that your employees’ payroll and tax returns are filed on time every time, and equally importantly that your employees are paid on the due date.

Furthermore, we keep right up to date with all the ever-changing legislation around tax, which is something that you can easily overlook if you are not a specialist. Staying up to date with payroll compliance can require a considerable investment of both time and money, but at Pay Check we do this as a matter of course.

We can also handle all your auto-enrolment pension scheme as well. That is another thing that can be very complicated to run because different employees will have different requirements according to age, salary, whether they can choose to join the pension scheme or not, whether they wish to opt out, and if they do, remembering that they must be auto-enrolled again after a certain period – after which they can opt out again!

For many businessmen and women, payroll can be the straw which broke the camel’s back. It is just too complex and takes up so much time.

When you use our payroll services for small business in the UK, we will agree a flat monthly fee with you that contains no hidden surprises. Not only that, but when you add up the cost of the time that payroll takes you, you will almost certainly save money as well. So, you get rid of the job, and it costs you less to do it. What could be better.

This article was written by
PayCheck Team
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info@paycheck.co.uk

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