National Payroll Week, which took place between 2 and 6 September 2019, is celebrating its 21st anniversary, and the Chartered Institute of Payroll Professionals (CIPP) decided to mark this with a series of events designed to raise the profile and awareness of payroll in the UK.
Official figures from the Office for Budget Responsibility (OBR) show that the collection of income tax and National Insurance is expected to contribute approximately £301 billion to the UK economy in the 2019/20 tax year.
As the CIPP points out, payroll is the largest expenditure in most UK organisations, and it has been proven that if it is properly managed, payroll can save employees money through salary sacrifice and other arrangements, which in turn improve employee motivation and morale.
Unfortunately, however, while payroll professionals do a great job, the vast majority of UK employees are not aware that it is their responsibility to check that they are paying the correct amount of tax.
Recent figures released by HM Revenue & Customs (HMRC) show that 44 per cent of employees in the UK, equating to some 14.3 million people, have paid too much tax as a result of being on the wrong tax code, or through errors with deductions, and seven per cent claim to have been affected in the past year alone.
Meanwhile, separate research suggests that 69 per cent of employees, meaning 22.4 million people, believe that it is not up to them to check that their payslip is displaying the correct tax code, which governs how much tax they pay.
The research also found that while overpaying tax due to payroll issues was prevalent across employees of companies of all sizes, employees of smaller businesses were significantly less likely to check their payslip for mistakes.
If you have any payroll concerns or would simply like a quote or further information please contact Jill Wernham on 01482 326916 or email email@example.com
Smailes Goldie Group
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