How will the upcoming changes to tax impact your SME’s payroll?
The Conservative government has a variety of policies prepared that will shake up the business landscape for SMEs and their payroll.
Specifically, plans are in place for the National Insurance threshold to be increased from 8,632 to £9,500, creating a tax cut for roughly 31 million people.
We can also expect changes to tax in the form of the Conservative’s ‘ultimate ambition’ which is to ensure that the first £12,500 you earn is tax-free, returning almost £500 per year to people.
How will this impact your payroll?
Those managing payroll must be ready to make the appropriate changes to their payroll deductions.
You must make the correct tax and National Insurance alterations, otherwise, you risk paying your workforce incorrectly which can have severe consequences.
Research from Kronos found that 24% of employees would look for a new job after one payroll error and 49% would seek new employment after two payroll errors.
How will this impact you?
If you manage payroll, you will have the responsibility of keeping on top of the upcoming changes to ensure you are paying your workforce correctly.
If you don’t have a modern payroll solution you can expect to see an increase in admin as you will have to manually alter the deductions, taking you away from your day-to-day.
What solutions are available for SMEs?
The upcoming changes to tax and National Insurance will undoubtedly take your attention away from other business-critical tasks.
So, why not let us manage your payroll?
Our IRIS Managed Payroll service effectively becomes your payroll department, entrusting the responsibility to our team of highly experienced CIPP-Accredited payroll managers who boast a 99.9% accuracy rate.
For more information and to find out how the IRIS Managed Payroll service can help you save time and resources, click here.
Are there any other changes?
Yes, there are a vast number of changes on the way that SME’s need to be ready for.
We’ve created a FREE guide that delves into the other policies the Conservative government has proposed, examining how they will impact payroll and what you can do to prepare.
To download the guide, click here.